Xbox Reportedly Planning Major Layoffs As Internal Memo Warns “This Cannot Continue”

Microsoft's Xbox division is reportedly planning significant layoffs in July, potentially impacting around 1,000 employees. This move follows financial struggles and aims to reassess the company's strategy and reintroduce exclusive games.

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12 articles · 10 sources 13 days ago

Xbox Initiates Major Layoffs and Restructuring Under New CEO

Xbox is implementing significant layoffs and a broad restructuring following new CEO Asha Sharma's call for a business reset. Declining revenues and strategic overextension are cited as key reasons for the workforce reductions. The move impacts various studios, with some fighting for survival amidst the changes.

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Microsoft comms lead says Xbox layoffs "were not made to replace employees with foreign workers" in response…Microsoft communications lead Frank Shaw clarified that recent Xbox layoffs, affecting 1,600 employees initially and planned to reach 3,200, were not made to replace workers with foreign H-1B visa holders. Shaw stated the workforce changes were necessary to restructure the Xbox business, which he described as unhealthy, and emphasized that the H-1B visa figures mentioned are company-wide and not specific to Xbox. He also highlighted that Xbox is the largest employer of American workers in the gaming industry. Retro Gamer · 4 days ago
Own goal specialist Xbox rifles another into the roof of the net - Patch Notes #60Xbox announced significant layoffs, impacting approximately 3,200 employees across various studios including id Software, ZeniMax Online Studios, Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. Xbox boss Asha Sharma cited a need to eliminate management layers and create a flatter organization, though many of the affected employees are senior staff integral to game production. This marks the fifth major round of layoffs at Xbox in three years, with unions like CWA Canada criticizing Microsoft's handling of the situation. Gamedeveloper.com · 4 days ago
Report – Xbox cuts around 25% of Obsidian staffXbox has initiated significant layoffs across its studios, with Obsidian Entertainment reportedly losing around 25% of its staff, impacting producers, artists, designers, and more. This is part of Microsoft's larger plan to lay off 3,200 employees by June 2027, though Blizzard Entertainment teams have been spared for now. The restructuring aims to shift focus away from smaller acquired studios, but the arbitrary nature of the cuts is causing concern over lost expertise. The Sixth Axis · 7 days ago

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