Microsoft will cut thousands more jobs next week, this time hitting its Xbox gaming division hardest. This marks the fourth round of layoffs for Xbox teams in just 18 months.

The move follows Microsoft’s May layoffs of 6.000 employees in product and engineering teams. While sales staff were largely spared last month, the new cuts will significantly impact sales and other departments across Xbox. Company leaders warned these reductions aim to "boost profits" amid heavy spending on artificial intelligence.

Microsoft is pouring billions into AI servers and data centers, forcing stricter spending controls elsewhere. Earlier this year, the company began shifting software sales for smaller clients to outside partners.

Globally, tech job losses are accelerating. Over 75.000 U.S. tech workers were laid off through May 2025 – a 35% jump from last year. Worldwide cuts exceed 90.000.

Intel leads with 20.000-25.000 positions eliminated this year, including 15-20% of its chipmaking staff in June alone. Panasonic cut 10.000 jobs globally, aiming to save $1.1 billion. Meta shed 3.600 "low performers," while Google offered buyouts to over 1.000 U.S. employees. Smaller firms like CrowdStrike (500 jobs) and Chegg (248 jobs) also downsized.

Microsoft’s total 2025 layoffs now approach 7.000 despite $70 billion in quarterly revenue. Analysts note its $80 billion annual AI investments are squeezing profits, driving cost-cutting measures.

As AI reshapes the industry, more tech giants are expected to trim workforces. Microsoft hasn’t specified which Xbox roles or regions will be affected when cuts begin next week.