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 bracing for substantial cuts across the entire group, Bloomberg reported citing sources.

Microsoft’s gaming business is seemingly in for another round of mass layoffs. The fresh cuts would be coming just as Xbox seems to be in full retreat from its long-standing console hardware business as it invests more in Windows gaming and bringing first-party exclusives to PlayStation 5.