Technology
Microsoft’s Xbox to Cut 3,200 Jobs, Divest Five Studios in Major Overhaul
Key Points
Microsoft’s Xbox to Cut 3,200 Jobs, Divest Five Studios in Major Overhaul Compulsion and Double Fine studios will become independent; Undead Labs and Ninja Theory will be sold. Xbox will also look to sell or spin out Arkane Studios. Microsoft 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.
Microsoft’s Xbox to Cut 3,200 Jobs, Divest Five Studios in Major Overhaul
Compulsion and Double Fine studios will become independent; Undead Labs and Ninja Theory will be sold. Xbox will also look to sell or spin out Arkane Studios.
Microsoft 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.”