XBOX Layoffs Hit Assembly Staff, But Agency Still Works With Microsoft

XBOX layoffs are reportedly widening as Microsoft continues a major restructuring of its gaming business, but a new clarification suggests one recent round of cuts was not caused by XBOX ending work with one of its PR partners.

The latest concern involves Assembly, a major external agency that has supported XBOX with media planning, communications, marketing research, and broader PR work. Early reports suggested Microsoft had cut ties with the agency, but that claim has now been clarified.

Bloomberg reporter Jason Schreier said Assembly’s layoffs were part of an agency-wide reorganization, not the result of XBOX ending its contracts with the company. Some employees who worked on the XBOX account were affected, but Assembly is still continuing to work with XBOX.

Assembly Layoffs Hit Some XBOX PR Staff

Assembly has been one of Microsoft’s major external partners for XBOX communications and marketing support. The agency has worked across several areas tied to public relations, campaign planning, and media strategy.

The layoffs drew attention because they came as XBOX is already facing reports of broader job cuts and possible studio closures. That timing led to speculation that Microsoft had ended or reduced its relationship with Assembly.

However, the situation appears more limited. According to Schreier’s clarification, Assembly’s cuts were tied to a broader internal reorganization at the agency itself. The affected employees included some people who had worked on XBOX, but the agency has not lost the XBOX account.

XBOX Restructuring Continues

The clarification does not remove the larger uncertainty around XBOX. Microsoft’s gaming division is still expected to face additional layoffs as the company pushes to improve profitability.

XBOX is currently going through a major restructuring under CEO Asha Sharma. Reports suggest Microsoft wants to make the gaming business more financially efficient, and Microsoft CEO Satya Nadella has also said the company is focused on improving profitability across the division.

Bloomberg’s Jason Schreier previously reported that larger XBOX layoffs are expected after Microsoft’s fiscal year ends. That has raised concerns that more teams and studios could be affected in the coming weeks.

For now, the confirmed point is that Assembly has not been dropped by XBOX. The layoffs at the agency were part of a wider internal reorganization, although some staffers who worked with XBOX were affected.

More details about Microsoft’s broader XBOX layoffs are expected after the company’s fiscal year closes.

Via Windows Central