Xbox Mass layoffs Are Expected To Hit On July 2, 2025

by Muhammad Ali Bari

The previously rumored mass layoffs at Xbox are expected to happen on Wednesday, July 2, 2025, according to a new rumor.

Bloomberg’s Jason Schreier took to Blue Sky to follow up on his report from last week regarding mass layoffs at Xbox. According to him, while the company’s fiscal year ends today, the aforementioned layoffs are expected to hit on Wednesday, July 2, 2025.

Xbox layoffs 2025

George Broussard, co-founder of 3D Realms/Apogee, took to Twitter/X recently to share that, based on his internal developer-level findings on the rumored 2025 Xbox layoffs, people at virtually every studio owned by Microsoft are anxious and worried. As per what the Duke Nukem developer has heard, entire studios may face closure. Around 1000 to 2000 employees are expected to be affected by these rumored layoffs. He mentioned that the Xbox division has about 10,000 employees in it, which would mean that the layoffs may affect as many as 20%. Broussard recalled hearing that the subscription service has “leveled off” and isn’t growing at a large rate anymore, but he isn’t aware whether it is a major reason behind the alleged Xbox layoffs. He pointed out that large corporations will always indulge in layoffs simply because they are all about profit, quarters, and costs, etc.

Schreier originally reported that, according to people familiar with Xbox’s plans, managers within the company are expecting substantial job cuts across the entire group. This will be the fourth major layoff at Xbox in the last 1.5 years, after three major downsizing last year and the closure of several studios. 2024 was already a rough year for the game industry, with many layoffs across the board. We sincerely hope that is not the case in 2025, and that all those who may be affected by potential layoffs at Xbox are able to land on their feet with new jobs without having to relocation.

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