Microsoft Plans Further Layoffs and Studio Restructuring in Xbox Division
· Technology · Times of India, Yahoo Finance Singapore, Bloomberg
Microsoft is preparing to cut hundreds of jobs within its Xbox division, marking the company's second major round of staff reductions this year. The move follows a July announcement by Xbox CEO Asha Sharma, who previously stated plans to eliminate 1,600 roles in addition to 1,600 cuts made earlier in 2026. Alongside the layoffs, the company intends to consolidate several game studios to improve the gaming business's overall profitability. CEO Asha Sharma has directed the division to prioritize major franchises like Elder Scrolls and Fallout while scaling back investments in smaller, recently acquired studios. These changes are part of a broader strategy to align Xbox's financial performance with industry averages by the end of fiscal year 2027.
Why it matters
The restructuring directly impacts hundreds of employees and signals a shift in Microsoft's gaming strategy toward focusing on major franchises rather than smaller studio projects. This consolidation reflects a broader effort by leadership to improve the profitability of the Xbox business unit.
Read the original report — Times of India
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