Microsoft is tipped to announce more layoffs of Xbox staff as part of its end of financial year reshuffling.

Bloomberg reports managers are expecting that the substantial cuts in the X-box division will be announced next week.

The news comes less than a month after Microsoft announced it was slashing 3% of staff, some 6000 of its 228,000 workers worldwide.

These Xbox related layoffs are additional to three earlier rounds of layoffs in 18 months with the Xbox division suffering sustained pressure following its $US69 billion acquisition of Activation Blizzard in 2023, Bloomberg says. Activation Blizzard titles include Call of Duty and World of Warcraft.

Previous cuts involved the loss of 1900 and 650 staff from its gaming division.

The repeated cuts align with the company’s investment focus on AI infrastructure and automation, and efforts to reduce the management layers in its organisation.