Microsoft Xbox Faces Layoffs as AI Investments Increase

Jun 25, 2025 United States United States Business & Finance
Microsoft Xbox Faces Layoffs as AI Investments Increase

Microsoft's Xbox division is bracing for deeper cuts as the company shifts its focus and investments toward artificial intelligence development.

Microsoft Xbox Faces Staff Reductions Amid AI Push

Microsoft's Xbox division is reportedly preparing for another round of layoffs, signaling a significant shift in the company's strategic priorities.

Layoffs Expected Across Studios and Support Teams

Sources indicate that the cuts will impact various studios and support teams within Xbox. This follows previous layoffs earlier in the year, as Microsoft redirects resources towards artificial intelligence.

Investment in AI Drives Strategic Shift

The decision to reduce staff in the gaming sector reflects Microsoft's commitment to investing heavily in AI technologies. The company is reallocating funds from various sectors to support its AI initiatives.

Impact on Xbox's Future Content

Investors and fans are watching closely to see how this strategic shift impacts Xbox's ability to deliver new content. The long-term effects of this investment will be revealed in the coming months.

By news 2 days ago
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