Microsoft studies internal adjustments in January that could affect Xbox

A rumor points to massive cuts at Microsoft that would also splash the Xbox division.

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Microsoft may face a new wave of layoffs throughout January, according to a rumor that has started circulating with force on social media and specialized forums. Although the Redmond company has not officially confirmed anything, the figures being discussed are particularly striking.

According to this unconfirmed information, Microsoft is considering cutting between 11,000 and 22,000 jobs, which would represent approximately 5% to 10% of its global workforce, currently around 220,000 employees.

Xbox, sales, and Azure may be among the affected divisions

• The rumor suggests that the adjustments would not be limited to a single department. The areas potentially affected would include Xbox, sales and marketing teams, as well as the Azure division, one of the company’s strategic pillars. So far, Microsoft has not made any public statements or denied the report.

These potential cuts would be in line with the company’s approach in recent years. In 2025 alone, Microsoft eliminated around 15,000 jobs, a measure aimed at containing costs and strengthening profitability in a context of significant investments, particularly in artificial intelligence. For the current fiscal year, the company plans to allocate up to $80 billion to AI, a figure that is already having an impact on the internal reorganization.

In the specific case of Xbox, the context is mixed. Xbox Game Pass continues to grow steadily, but hardware sales are going through a tough time, with significant declines in markets like the UK, where it’s being called the worst year ever for Xbox consoles. All this is happening, moreover, with the next generation of hardware on the horizon, a factor that could be influencing Microsoft’s strategic decisions.

For now, it’s best to treat this information with caution until there’s official confirmation, but the rumor once again puts a recurring topic on the table: Microsoft’s internal restructuring in the midst of a transition to a model increasingly focused on services and artificial intelligence.