Xbox Plans to Lay Off 3200 Employees
Microsoft said the cuts are part of a broader push to raise margins as Xbox’s player base and playtime have declined.
- On Monday, Xbox CEO Asha Sharma announced the division will cut 3,200 jobs over the next year, with 1,600 reductions occurring immediately as part of broader Microsoft layoffs totaling 4,800 positions affecting around 20% of Xbox's staff.
- Sharma identified unsustainable revenue margins operating at 3-10x lower than competitors and a 'hardware crisis' as primary drivers, noting Game Pass investments failed to achieve expected growth despite record spending.
- Four studios—Ninja Theory, Undead Labs, Compulsion Games, and Double Fine Productions—are being divested, impacting 350 employees who will retain their IP and funding to continue independently as part of the 'reset.'
- Helen Chiang was promoted to Chief Operating Officer with end-to-end profit and loss responsibility across content, hardware, platform, and services, while Arkane Studios began consultations with its Works Council regarding strategic options.
- The Communications Workers of America urged the company to negotiate 'meaningful layoff protections' as reductions coincide with Microsoft's skyrocketing memory costs tied to AI compute expansion.
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Xbox Layoffs: Why Job Cuts at Microsoft's Gaming Division Are Concerning | 📲 LatestLY
Microsoft is restructuring its Xbox division, cutting 3,200 jobs throughout fiscal year 2027, with 1,600 roles eliminated immediately. CEO Asha Sharma cited poor profit margins and unsustainable growth as reasons for the reset. Four studios are being spun off, and management layers are being reduced to streamline operations effectively. 📲 Xbox Layoffs: Why Job Cuts at Microsoft's Gaming Division Are Concerning.
Xbox Layoffs Purge 32% of Phil Spencer's Studio Empire as New CEO Asha Sharma Slashes 3,000 Jobs
Xbox will cut around 3,000 jobs and spin off four game studios in the next year as new chief executive Asha Sharma orders what she calls the 'most significant restructure' in the division's 25‑year history. In a memo to staff on Monday, Sharma confirmed that about 1,600 Xbox employees are being laid off immediately, with a further wave of redundancies to follow across fiscal 2027, largely affecting teams in Microsoft's gaming arm. The Xbox layof…
The U.S. company Microsoft is cutting out around 3,200 jobs in its Xbox video game division.
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