Microsoft Xbox plans to cut hundreds of jobs

On July 6, the new CEO took to X to announce “the most significant restructure in XBOX history” [File] | Photo Credit: REUTERS 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.“In FY26, over 200 million new players came to XBOX and our games, but our business did not grow with our audience. We need to close that gap by investing in what players value. That will take time, but we expect to return to growth by the end of FY27,” posted Ms. Sharma on X on July 30.Layoffs at Xbox had been widely predicted by industry analysts, and did not come as a shock to insiders. Published - September 22, 2026 01:47 pm IST