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Investing.com -- Microsoft Corp (NASDAQ:MSFT). is preparing for another significant round of layoffs in its Xbox division next week as part of a broader company reorganization.
Managers within Xbox are anticipating major cuts across the entire group, according to Bloomberg, citing sources familiar with the plans. This would mark the fourth major reduction in Xbox staff in the past 18 months, following three rounds of cuts last year and the closure of several subsidiaries.
The Xbox division, which produces video game hardware and software, has faced pressure from Microsoft executives to improve profit margins since the company acquired Activision Blizzard Inc (NASDAQ:ATVI). for $69 billion in a deal that was completed in 2023.
Microsoft also plans to cut thousands of jobs next week, primarily in sales positions, as part of this restructuring effort.
The technology company typically implements major organizational changes near the end of its fiscal year, which ends on June 30.
Microsoft has declined to comment on the reported layoffs.
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