Microsoft will initiate another round of mass layoffs, mainly impacting its Xbox and Global Sales divisions, just days before the close of its fiscal year, according to reports from Bloomberg and The Verge. This marks the fourth wave of layoffs in 18 months, as the US-based tech titan restructures internally to streamline operations and reduce costs. Sources within the company told Bloomberg that this would be a 鈥渟ubstantial鈥 round of job cuts, affecting thousands globally. While an exact number remains unconfirmed, insiders suggest this will be one of the more significant reductions to date, signalling deeper concerns over profitability and division-level performance. Xbox Under Pressure After Activision Acquisition Microsoft’s $69 billion acquisition of Activision Blizzard in 2023 was aimed at turbocharging the Xbox division, positioning it as a leading content powerhouse in the gaming industry. However, the anticipated growth has not materialised as expected, putting Xbox under intense pressure to deliver stronger margins. 鈥淭he expectations on Xbox have skyrocketed since the Activision deal,鈥 a company insider said. 鈥淚t鈥檚 no longer just a content platform; it鈥檚 expected to drive significant growth.鈥 This pressure has already led to repeated job losses within the gaming wing. In January 2024, 1,900 employees were let go, followed by another 650 in September 2024, primarily from Xbox. The company also shuttered multiple studios including Tango Gameworks (known for Hi-Fi Rush) and Arkane Austin (Redfall developers). Despite the turbulence, Microsoft鈥檚 Xbox team is pressing ahead with development of its next-generation console in collaboration with AMD. Sources told The Verge that 鈥渞estructuring Xbox distribution across central Europe鈥 is part of the reorganisation to align better with future hardware strategy. Sales and Marketing Teams Also Impacted Microsoft鈥檚 Global Sales and Marketing division, which employs nearly 45,000 people, is also in the crosshairs. Already, 6,300 jobs have been eliminated in two phases in the past month. The upcoming round will further cut headcount, as the company moves to 鈥渇latten management layers鈥 and reduce what it calls 鈥渁dministrative overhead.鈥 According to a previous corporate statement, Microsoft aims to cut approximately 3 per cent of its global workforce, which stands at 228,000 employees. The company has not yet issued an official comment on the precise scale of the latest layoffs. Restructuring as a Strategic Realignment The layoffs appear to be part of a broader strategic realignment as Microsoft tries to consolidate its position amid a challenging economic environment, high operating costs, and increasing pressure on division-level performance. Analysts believe the tech giant is making tactical cuts to reposition for long-term growth, especially in the gaming and enterprise software segments. Neena Rai, a tech industry analyst based in London, said, 鈥淢icrosoft is clearly aligning its resource strategy to reflect market realities and division profitability. These moves, while painful, could be aimed at recalibrating the Xbox and sales engines for future performance.鈥 Talent Fallout and Industry Impact The layoffs come at a time when Big Tech is grappling with overhiring during the pandemic and shifting global demand. With Microsoft setting the trend, similar rebalancing moves may be expected from other tech giants with large gaming and sales divisions. Furthermore, industry insiders say that many laid-off employees could find opportunities in India and Southeast Asia鈥檚 burgeoning tech sectors, where local firms are eagerly absorbing global talent displaced by corporate restructuring. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.