Microsoft has conducted a large-scale layoff in the Xbox department, marking the fourth reduction in personnel in the past 18 months, aimed at restructuring strategy and increasing business efficiency.
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Microsoft laid off about 200 employees at King and many other positions in the Xbox department in Europe and the United States.
This move reflects efforts to increase profit margins following the $69 billion acquisition of Activision Blizzard.
Xbox is restructuring to focus on developing core products and optimizing governance under CEO Phil Spencer's direction.
How has Microsoft reduced its Xbox department workforce?
Microsoft laid off about 200 employees at King in Barcelona, accounting for 10% of the studio's workforce, along with many other positions at ZeniMax and its branches in the United States.
Reports from Bloomberg and CNBC indicate that the company plans to reduce a total of 9,000 employees globally, equivalent to under 4% of the total workforce. Previous layoffs in the past 18 months have been continuous, affecting more than 8,000 people.
The Xbox division currently has about 20,000 employees, but the layoffs are aimed at improving profit margins and reallocating resources for key projects.
Comments from Microsoft leadership on the layoff
Organizational and personnel changes are necessary to ensure the company's position and teams in the volatile technology market.
– Microsoft spokesperson, July 2025
What drives Microsoft to restructure and reduce personnel?
The $69 billion merger with Activision Blizzard at the end of 2023 puts significant pressure on the Xbox division, forcing them to optimize costs, focus on strategic growth areas, and enhance operational performance.
As Xbox CEO Phil Spencer shared with employees, the company needs to eliminate excess management layers to increase responsiveness and operational efficiency, while focusing on developing platforms, hardware, and high-potential game projects.
"To aim for sustainable success, we will end or scale down some non-essential business areas while improving flexibility by streamlining management."
– Phil Spencer, President of Xbox, July 2025 (according to Variety)
How is Microsoft changing its Xbox product strategy?
In July 2025, Microsoft launched the Xbox ROG Ally, a handheld gaming PC developed in partnership with Asus, marking a step forward in the strategy to expand the user base of mobile devices.
The company also announced a collaboration plan with AMD to develop next-generation hardware for Xbox, although the timing and specific details have not been disclosed.
Some industry veterans express concern about this direction, arguing that making Xbox games available on all devices may be more of a marketing strategy than a real improvement for gamers' experiences.
What benefits does Microsoft provide to affected employees?
According to a letter sent to employees, Microsoft is committed to ensuring layoff benefits according to local laws, including continued salary compensation, health insurance, and job search support to minimize negative impacts on workers.
How have Microsoft's layoffs occurred in the past 18 months?
Time Employee Count Department Notes January 2024 1,900 Xbox, Activision Blizzard Significant reduction in Xbox and related studios May 2024 Undetermined Tango Gameworks, Arkane Austin Closure of several game development studios September 2024 650 Xbox Team Continued workforce streamlining June 2024 1,000 HoloLens and Azure Layoffs in technology departments July 2025 9,000 Global (focused on Xbox) Latest round of layoffs, under 4% of total workforce
Frequently Asked Questions
How many Xbox department employees has Microsoft laid off in the latest round? About 200 at King and many other personnel globally contributing to a total of 9,000 positions cut. What is the main motivation behind Microsoft's continuous layoffs? Pressure to improve profit margins after the acquisition of Activision Blizzard and restructuring product development strategy. How does Xbox leadership view these layoffs? Phil Spencer believes this is a difficult but necessary decision to increase flexibility and focus on key business areas. What support does Microsoft provide to laid-off employees? Ensuring legal benefits, including salary compensation, health insurance, and job search assistance. What’s new in Xbox product strategy? Launching Xbox ROG Ally, collaborating with AMD to develop next-generation hardware, focusing on diversifying the gaming platform.
Source: https://tintucbitcoin.com/xbox-cat-giam-nhan-su-game-do-crypto/
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