'We must reset XBOX': Microsoft will lay off 3,200 employees
In addition, company management eliminated 1,600 jobs, emphasizing that the business “is not healthy” and that it has “weakened.”
XBOX and Microsoft logos
Microsoft announced on Monday that it will lay off approximately 3,200 employees from its video game division over the course of the next fiscal year due to the restructuring of the XBOX divisions, one of its most important subsidiaries.
In addition, the tech giant eliminated 1,600 jobs on Monday. The goal is for the new structure to be more efficient and to operate “towards a shared goal” to “get things done,” as explained by XBOX CEO Asha Sharma.
In a statement, Sharma emphasized that the company’s business “is not healthy,” which has led her to implement these changes and lay off people who “have poured their creativity” for years into XBOX’s growth.
She also reported that they are performing well below the competition, noting that the company’s latest releases “did not grow at the pace we expected.”
"As that happened, our core business weakened. ... We must reset XBOX," Sharma added.
The video game company has undergone several rounds of cost-cutting since the deal was closed in 2024 for Microsoft’s acquisition of Activision Blizzard for $68.7 billion.
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