Xbox teams won’t be spared from Microsoft’s upcoming bloodbath; its cuts will affect more departments than we thought. Bloomberg predicts that the next wave of layoffs, expected next week, will also affect Xbox developers.

Just minutes ago, news broke that Xbox and Meta are teaming up to launch the Meta Quest 3S Xbox Edition—an initiative designed to expand the reach of Xbox Cloud Gaming (Beta) to even more gamers. But while that partnership grabs headlines, there’s sobering news for workers in the industry: Microsoft’s next round of layoffs, scheduled for next week, will also hit Xbox teams.

Once again, the scoop comes from Bloomberg journalist Jason Schreier. According to sources close to Microsoft’s internal operations, Xbox leadership is bracing for “substantial cuts” across the division as the tech giant undergoes a sweeping corporate reorganization. It’s still unclear exactly how many jobs will be lost, but Bloomberg reports more details are coming soon.

This news follows Bloomberg’s previous report last week that Microsoft was planning cuts across several departments, with sales teams expected to bear the brunt. The twist? Schreier has now confirmed that Xbox developers are on the chopping block as well.

Microsoft had already announced plans to lay off 7,000 employees back in May, so the industry had been bracing for another wave. Like many large corporations, the company is restructuring as the fiscal year ends (June 30), aiming to cut costs and double down on sectors like Artificial Intelligence. For devs and game makers, it’s a rough reminder of the harsh realities of tech in 2024.

Meanwhile, Xbox Tries to Project Strength

Amid this turmoil, Xbox has been trying to stoke hype by unveiling new growth plans. Alongside the Meta Quest 3S Xbox Edition, the company announced the ROG Xbox Ally handheld, revealed a partnership with AMD to boost next-gen console graphics, and confirmed Steam integration for its PC app. The “everything is Xbox” strategy is in full effect, as Microsoft expands into as many tech branches as possible.

Source: 3djuegos