Microsoft is bracing for another round of layoffs in its gaming division, with managers expecting significant reductions across Xbox teams. The cuts, part of a broader company reorganization, follow three prior waves totaling over 2,550 jobs lost since the $69 billion Activision Blizzard acquisition. Most of the latest reductions target corporate and support roles, particularly at Activision Blizzard, though some mobile game teams, like those behind Call of Duty: Warzone Mobile and Warcraft Rumble, face downsizing as they shift to live operations. No games, devices, or studios are being canceled, but the scale of the layoffs has raised alarms about Xbox’s direction.
The gaming division, which includes Bethesda, Obsidian, and 343 Industries, employs about 22,000 people. Earlier cuts hit hard, with 1,900 jobs slashed in January and 650 in September,…