According to Bloomberg, Microsoft is planning another “company-wide reorganisation” within its Xbox division as early as next week.

This marks the fourth significant cut in the past 18 months.

The outlet has said Xbox has been facing mounting pressure from Microsoft higher-ups to “boost profit margins” following its acquisition of Activision Blizzard in October 2023 - which cost the company $68.7 billion.

The Verge has also claimed that the restructuring will impact Xbox distribution operations in Central Europe, potentially closing regional branches.

Xbox has undergone several cost-cutting rounds of layoffs recently: over 1,900 jobs were lost after the Activision Blizzard acquisition in January 2024, and five game studios were closed in May 2024 - including Hi-Fi Rush developer Tango Gameworks, which was then purchased by PUBG: Battlegrounds publisher Krafton.

Then in September 2024, 650 roles were cut, before three per cent of Microsoft’s total headcount were let go in May 2025 - and now seemingly this latest move.

Microsoft’s fiscal year ends on June 30, and tech companies often finalise restructuring ahead of that.

Xbox managers have reportedly been briefed on the supposed layoffs, but official numbers aren’t said to be confirmed.

Cuts are expected in Xbox’s European sales and distribution teams, and may signal a shift in strategy ahead of the next generation of Xbox consoles.

Microsoft has not publicly commented as of now.