Microsoft Xbox plans to cut hundreds of jobs
Microsoft's Xbox division is preparing to lay off hundreds of employees as part of a major restructuring effort. CEO Asha Sharma cited the need for a business 'reset' to improve margins and align operations with the company's long-term growth goals.
Why it matters
The layoffs reflect ongoing volatility in the gaming industry and the challenges major tech companies face in balancing massive user bases with profitability.
Xbox is preparing to cut hundreds of jobs this week while the gaming giant plans to streamline some studios, reported the Information outlet, citing an unnamed source.
Xbox is yet to formally confirm or deny the news report, but the company had previously laid out detailed plans for changing operations and reducing headcount under its new CEO Asha Sharma.
On July 6, the new CEO took to X to announce “the most significant restructure in XBOX history,” with the company planning to reduce its team by approximately 3,200 throughout the 2027 financial year.
Ms. Sharma highlighted the need for a “reset” targeting the company’s content portfolio, platform, and team operations.
She noted that the business was “not healthy,” citing margins that were significantly lower than rival platform and publishing businesses.
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