Stories
Microsoft Cuts Hundreds of Xbox Jobs Amid Gaming Division Restructuring
F
Firstpost•22-09-2026, 21:01
Microsoft Cuts Hundreds of Xbox Jobs Amid Gaming Division Restructuring
- •Microsoft has initiated another round of layoffs, affecting hundreds of employees in its Xbox gaming division, with nearly 500 expected to be impacted.
- •These cuts are part of a broader strategy to streamline Microsoft's gaming business, aiming to eliminate roughly 20% of the Xbox workforce.
- •The restructuring includes around 268 gaming role cuts, a reorganization of Xbox's studio group, and plans for disinvestment.
- •Xbox CEO Asha Sharma is leading this restructuring to improve returns, following earlier considerations by Microsoft CEO Satya Nadella and CFO Amy Hood to potentially separate parts of the gaming business.
- •Microsoft is consolidating its expanded gaming portfolio, including acquisitions like ZeniMax Media and Activision Blizzard, to operate with a smaller, more unified organization.
Key Questions Answered
Microsoft's latest round of layoffs in the Xbox gaming division is expected to affect nearly 500 employees, alongside a smaller number of roles in other units like Cloud + AI.
Led by Xbox CEO Asha Sharma, the restructuring aims to eliminate roughly 20% of the workforce, streamline the gaming business, reduce vendor spending and management layers, and improve overall returns as Xbox moves away from relying solely on hardware sales.
Microsoft expanded its gaming portfolio significantly through its $7.5 billion purchase of ZeniMax Media and its acquisition of Activision Blizzard, creating one of the industry's largest collections of gaming studios and franchises.
