Microsoft (MSFT) Is Preparing for a Large Round of Layoffs in Its Xbox Division

Tech giant Microsoft (MSFT) is reportedly preparing for another large round of layoffs, this time focusing on its Xbox gaming division. According to Bloomberg, the cuts are part of a company-wide restructuring, and managers within Xbox have already been told to expect major reductions across the group. While the exact number of jobs hasn’t been confirmed, reports suggest that the layoffs will be substantial. Indeed, The Verge added that some Xbox operations in central Europe may shut down entirely as part of the reorganization.

These upcoming job cuts follow several recent rounds of layoffs by Microsoft. In May, the company announced that it would cut about 6,000 employees, roughly 3% of its global workforce, mainly from its product and engineering teams. Just a few weeks later, Microsoft laid off an additional 300 people. Furthermore, Bloomberg reported last week that Microsoft plans to cut thousands more jobs, especially in its sales division, as it reallocates resources to focus more on artificial intelligence.

If the reported Xbox layoffs happen as expected, this will be the fourth major reduction in the gaming unit’s workforce over the past year and a half. The frequent cuts suggest a larger strategic shift at Microsoft, with a greater emphasis on AI and less on certain existing operations. Although Microsoft hasn’t officially confirmed the layoffs yet, the consistent reports indicate that the company is undergoing significant internal changes to stay competitive in the tech space.

Is MSFT Stock a Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 30 Buys and five Holds assigned in the last three months. Furthermore, the average MSFT price target of $516.14 per share implies 5.2% upside potential.

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