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Microsoft is planning its fourth major round of Xbox layoffs since January 2024

Microsoft managers are expecting a major round of layoffs at Xbox next week, according to reporting by Bloomberg. The cuts will coincide with the end of the company’s fiscal year.

The layoffs will mark the fourth major round for Xbox since January 2024, when the company cut 1,900 jobs about three months after officially acquiring Activision.

Xbox has reportedly been under pressure to boost profit margins in an industry that’s been dinged by tariffs, increased competition, and expanding budgets.

At the same time, Xbox is shaping its next console generation, which appears to be more closely aligned with Microsoft and PC gaming than ever before.

Sony’s PlayStation has similarly performed layoffs and game cancellations in recent months, along with studios like Electronic Arts.

Xbox has reportedly been under pressure to boost profit margins in an industry that’s been dinged by tariffs, increased competition, and expanding budgets.

At the same time, Xbox is shaping its next console generation, which appears to be more closely aligned with Microsoft and PC gaming than ever before.

Sony’s PlayStation has similarly performed layoffs and game cancellations in recent months, along with studios like Electronic Arts.

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A screenshot from Hims & Hers' website. (Sherwood News)

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Premium seats help push airlines higher following third-quarter results

Shares of American Airlines are climbing toward the carrier’s best trading day since August 12, when ultra-budget rival Spirit issued its initial warning about its ability to survive. American’s shares are up more than 7% on Friday afternoon.

Investors’ optimism comes a day after American posted a better-than-expected full-year earnings forecast. In a call with investors, American said that it’s ramping up its premium cabin offerings.

“Our ability to grow capacity in premium markets will be further supported as we take delivery of new aircraft and reconfigure our existing fleet. These efforts will allow us to grow our premium seats at nearly two times the rate of main cabin seats,” CEO Robert Isom said. American CFO Devin May said that nose-to-tail retrofits of certain wide-body jets will bump the number of premium seats available on those planes by 25%.

Extra legroom has been a boon for major carriers, particularly this quarter. Delta Air Lines said its premium product revenue grew 9% in Q3, compared to a 4% drop in economy seat revenue. Similarly, United Airlines said its premium revenue grew 6%, outpacing economy. Shares of both airlines were up more than 3% on Friday.

Carriers with less exposure to first- and business-class tickets like Southwest Airlines and JetBlue didn’t see the same amount of momentum on the day.

Ford plant Cologne

Ford rallies to 52-week high: Wall Street is optimistic about its EV reset and aluminum plant recovery plan

Ford shares reached their highest level since July 2024 in Friday morning trading.

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