Are job cuts on the way at Xbox?

Following the news that Microsoft

is to shed some 5,000 jobs

in the next 18 months, with 1,400 of them happening immediately, sources are claiming that its Xbox division could be a potential victim of the culls.

ZDnet is reporting that Microsoft is directly targeting its Entertainment and Devices Division, home of amongst other things its Xbox operations, as part of its cost-cutting news. Other units rumoured to be affected include Microsoft’s Online Services and Business units.

What is certain, however, is that two of Microsoft’s Xbox employees have already departed the firm, with Joystiq picking up on a Twitter post from former Gamerscore Blog member Chris Paladino, who confirmed that he is a ‘casualty’ of the cuts and that the Gamerscore Blog is no more.

Also gone from the firm is former Achievement Junkie podcast host Nelson Rodriguez.

In addition, sources have told Gamasutra that a significant proportion of the team at train and flight Simulator studio ACES have departed, with some sources even going as far as to claim that the entire Microsoft Flight Simulator team has been let go. Again, Twitter has played a part in these reports.

When contacted by MCV, Microsoft said it was unable to comment on the speculation, instead directing us to its official financial report.

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