Microsoft cuts 268 gaming jobs in latest Xbox restructuring wave

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Microsoft laid off 268 employees across its gaming division this week as part of an ongoing Xbox restructuring effort. The cuts are the latest in a series of workforce reductions that began in early 2024, when the company started eliminating thousands of gaming roles. The reorganization also involved shuffling major studios and franchises within the Xbox portfolio. Current and former employees have described a lasting negative impact on workplace morale following repeated layoffs and studio closures. The continued turbulence signals that Microsoft's Xbox division remains in a prolonged period of significant internal change.

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