Xbox is preparing to cut hundreds of jobs amid a major restructuring aimed at streamlining operations and returning the gaming division to growth.
SEATTLE
Microsoft’s Xbox is preparing to cut hundreds of jobs this week as the gaming division moves ahead with a major restructuring aimed at streamlining operations and returning to growth, according to a report by The Information citing an unnamed source.
The company is also planning changes across some of its gaming studios as part of the restructuring. Xbox has not formally confirmed or denied the reported job cuts. The developments come after new CEO Asha Sharma announced plans to reorganise the business and reduce its workforce.
Sharma, who took over as Xbox CEO, has been pushing the division to improve its performance and return to growth by the end of Microsoft’s 2027 financial year. On July 6, she described the changes as the “most significant restructure in XBOX history” in a post on X.
The latest reported job cuts add to a series of changes at Microsoft’s gaming business as it seeks to make its operations more efficient. The restructuring is expected to affect employees across parts of the Xbox organisation, although the exact number and teams involved have not been officially disclosed.
Microsoft has been working to reshape its gaming operations following significant investments in the sector. Xbox’s leadership is now focusing on controlling costs, simplifying its structure and improving growth prospects. However, details of the latest workforce reduction remain limited until the company makes an official announcement.
The reported cuts come as Xbox continues to review its studios and business operations under Sharma’s leadership. Any further details regarding the number of affected employees, specific studios or the timing of the changes are expected to emerge after Microsoft formally communicates its plans.
