XBOX CUTS 1,600 JOBS, PLANS 1,600 MORE

The cuts represent a significant restructuring of Xbox's workforce. The initial round of 1,600 departures occurred this week, while the second wave of equal size will occur throughout the following year. The extended timeline of planned cuts creates sustained anxiety among employees who remain uncertain whether their roles will be affected. Staff members face months of ambiguity as the company executes its workforce reduction strategy. Microsoft has not disclosed specific reasons for the layoffs or identified which teams will be most affected by the second phase of cuts. The company's phased approach means many employees will operate under the shadow of potential job loss for an extended period. This represents one of the largest workforce reductions in Xbox's history and reflects broader challenges in the gaming industry following a period of aggressive hiring and spending.