Xbox to Cut 3,200 Jobs
Microsoft's gaming division plans to reduce its team by approximately 3,200 throughout the 2027 financial year as part of a major restructuring effort under new CEO Asha Sharma
Story timeline5 updates
Xbox lays off 268 more individuals, with 343 Industries to stop developing new Halo games.
Activision will develop the next Halo title, led by a new team.
Microsoft plans another round of job cuts, potentially affecting hundreds of Xbox employees.
Xbox to lay off hundreds more people this week and consolidate several studios.
Story published. Microsoft's gaming division plans to reduce its team by approximately 3,200 throughout the 2027 financial year as part of a major restructuring effort under new CEO Asha Sharma
Microsoft Xbox has announced plans to cut hundreds of jobs as part of a restructuring effort aimed at streamlining operations and reducing headcount. The move, announced by new CEO Asha Sharma, will see the company reduce its team by approximately 3,200 throughout the 2027 financial year.
The restructuring plans were first announced by Asha Sharma on July 6, with the CEO stating that the business was 'not healthy' due to lower margins compared to rival platform and publishing businesses. Despite over 200 million new players coming to XBOX and its games in FY26, the company's business did not grow at the same rate as its audience.
Asha Sharma has stated that the company needs to 'reset' its content portfolio, platform, and team operations in order to close the gap between audience growth and business growth. The CEO expects the company to return to growth by the end of FY27.
The job cuts are part of a larger effort to address the company's lower margins and improve its overall financial health. Asha Sharma posted about the restructuring plans on X on July 30, reiterating the need for the company to invest in what players value.
## Why it matters The restructuring plans come at a time when the gaming industry is facing increased competition and changing consumer habits. The move by Xbox to reduce its headcount and streamline operations is seen as an effort to stay competitive and improve its financial performance. The company's ability to return to growth by the end of FY27 will depend on its ability to successfully implement the restructuring plans and invest in areas that drive player engagement.
The job cuts will likely have a significant impact on the company's employees and the wider gaming industry. As the company works to implement the restructuring plans, it will be closely watched by investors, analysts, and gamers alike.
