Xbox is preparing for a major reset that’s sure to cause significant trouble. Studios will be closed and employees laid off. In reality, it is Microsoft as a whole that will be affected, not just the gaming division.

In fact, Business Insider reports that the American tech giant also plans to cut jobs in the sales and consulting sectors. As a result, 2.5% of the group’s 220,000 employees are expected to be let go. That amounts to approximately 5,500 people. The announcement is expected as early as next week.

In 2025, Microsoft had already laid off 15,000 of its employees.