Microsoft Axes Hundreds in Xbox Division Amid Gaming Reorganization

Microsoft's Xbox division has been hit by another round of layoffs, affecting hundreds of employees in Washington state. The move comes two months after the company laid off 4,800 gaming and sales team employees companywide.

The latest cuts amount to about 300 jobs in Washington state alone, with a total of around 450 positions eliminated across the company. This brings the total number of Xbox-related layoffs in the state to over 1,200 in recent months.

Microsoft is reorganizing its gaming division under new leadership, with Asha Sharma taking over from Phil Spencer in February. The company aims to revitalize the division and cut costs amid rising AI development expenses and a workforce that swelled during the COVID-19 pandemic.