Microsoft Plans Major Job Cuts at Xbox Gaming Division

Microsoft Corp. will conduct another round of major layoffs in its Xbox division next week as part of a company-wide reorganization.

Managers within Xbox are expecting substantial cuts across the entire group, according to people familiar with the plans who asked not to be identified discussing nonpublic information. The company declined to comment.

This will be the fourth big layoff at Xbox in the past 18 months, following three major cuts last year and the closure of several subsidiaries. Xbox, which produces video-game hardware and software, has been under pressure from Microsoft executives to boost profit margins since purchasing Activision Blizzard Inc. for $69 ...