Rumors have emerged that Microsoft Gaming is preparing for a large-scale restructuring that could see a 15% reduction in its workforce.

A post on the anonymous professional community Blind, written by a user claiming to be an employee at Microsoft subsidiary Activision Blizzard, alleged that the company is preparing to cut 15% of its gaming staff. The post cited the date '5/6,' suggesting an official announcement could come on either May 6 or June 5, depending on the date format used.

While not officially confirmed, the claim is gaining traction as it follows Microsoft's announcement last month of a hiring freeze across its cloud and sales divisions. In the comments section of the post, an Amazon employee noted that "hiring freezes are typically implemented before major layoffs are announced," citing a similar case at Amazon last January. The employee added, "The signs are already there; it's up to you whether to believe it or not."

Asha Sharma, CEO of Microsoft Gaming, took the helm this past February, succeeding former Gaming CEO Phil Spencer. At the time, Microsoft CEO Satya Nadella expressed his gratitude for Spencer's exceptional leadership and partnership during his 38-year tenure. Reflecting on his departure, Spencer said, "Last fall, I told Satya that I was thinking about stepping down to start the next chapter of my life," adding, "Xbox is more than just a business; it is a vibrant community of players, creators, and teams who care deeply about what we make and how we make it."

Shortly after Spencer's departure, former Xbox President Sarah Bond also left the company. In a statement, Bond expressed pride in her achievements and explained that it was time for her to move on to the next phase of her personal and professional life. Some analysts suggest that the failure of the 'This is an Xbox' marketing campaign, which Bond spearheaded, and the resulting internal friction played a role in her exit. The campaign, which emphasized the ability to play games regardless of the device, failed to gain significant traction and drew internal criticism from some employees who found it off-putting or difficult to work with.

Meanwhile, under the leadership of CEO Sharma, the gaming division is expected to accelerate the overhaul of its revenue models. Industry observers suggest that Sharma’s first major move may be the introduction of a new subscription tier for 'Xbox Game Pass' that would exclusively offer titles from Microsoft’s first-party Xbox Game Studios. There is also growing speculation that a potential subscription bundle with global streaming giant Netflix is in the works.