Xbox Laying Off 3,200 and Dropping 4 Studios in 'Reset' of Microsoft's Games Strategy
Xbox is doing a "reset," but can it reboot the business?
Microsoft's gaming brand cut 1,600 employees on Monday, with an additional round of layoffs expected before June 2027, according to an employee memo from Xbox CEO Asha Sharma. The layoffs are part of a massive restructuring by Microsoft, which is cutting about 2.1% of its total workforce, or roughly 4,800 employees.
Approximately 350 people affected are from four gaming studios that Xbox plans to offload to outside management: Compulsion Games, Double Fine, Ninja Theory and Undead Labs, all of which were bought within the last eight years. A fifth, Arkane Studios in France, could also be sold or spun off.
Sharma, who took over Microsoft's gaming division in February, said in her statement that Xbox's business operation is "not healthy," that costs are too high and the customer base too low. She said Game Pass-- a monthly...
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