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Microsoft’s Xbox to Cut 3,200 Jobs, Divest Studios in Overhaul
Posted
July 6, 2026
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5:19Now PlayingMicrosoft Corp.’s Xbox plans to eliminate 3,200 jobs, or around 20% of its staff over the next year, as part of a massive reorganization to spur growth in the struggling gaming division. Xbox will also divest four of its video-game development studios and is beginning the process to part ways with a fifth.
“Our business today is not healthy,” Chief Executive Officer Asha Sharma wrote in a note to staff Monday morning, adding that Xbox is operating at margins three to 10 times lower than comparable businesses. “We must reset Xbox.”
Brody Ford, Bloomberg Technology Reporter, joined Bloomberg's Paul Sweeney and Scarlet Fu to talk about Microsoft's XBox layoffs.
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