Microsoft is preparing a new round of layoffs at Xbox, the fourth in 18 months.

Tech giant Microsoft is finalizing a new round of layoffs in its Xbox division, the company's video game console, as part of an internal reorganization process.

According to sources familiar with the matter consulted by Bloomberg, Xbox's middle management anticipates a significant cutback, which would be the fourth workforce adjustment in 18 months . Three were executed in 2024 alone, and several subsidiaries were closed.

Xbox has been under pressure from Microsoft executives to increase its profit margins following its $69 billion (€59.367 billion) purchase of Activision Blizzard in 2023.

Bloomberg News has already reported that Microsoft is planning to cut thousands of positions next week , primarily in sales. The multinational typically makes these types of changes at the end of its fiscal year, which ends on June 30.