Looks like Xbox is in for another round of pink slips next weekmanagers are bracing for more cuts on top of the 6,000 roles Microsoft (NASDAQ:MSFT) trimmed in May and the 300 it axed this month.
Bloomberg hears the layoffs will touch studios and support teams across the board, as Redmond shifts those headcount dollars into its big AI push.
It’s a classic trade-off: pour more cash into next-gen machine smarts or keep pumping out gaming content? Microsoft’s already said it’s retooling sales roles to bankroll these AI bets, so Xbox is feeling the squeeze.
We’ll want to watch for any official word from the company (and what Satya Nadella’s next earnings call reveals) to see if fans and investors think the gamble will pay offor if it leaves Xbox’s creative engine running on fumes.
This article first appeared on GuruFocus.