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Microsoft’s Xbox to Cut 3,200 Jobs, Divest Studios in Overhaul

Microsoft’s Xbox to Cut 3,200 Jobs, Divest Studios in Overhaul
Bloomberg Technology Monday 06 July 2026, 17:19 UTC 1 min read
Key Points

Jul 6th, 2026 Microsoft’s Xbox to Cut 3,200 Jobs, Divest Studios in Overhaul 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...

Jul 6th, 2026 Microsoft’s Xbox to Cut 3,200 Jobs, Divest Studios in Overhaul 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.” Brody Ford, Bloomberg Technology Reporter, joined Bloomberg's Paul Sweeney and Scarlet Fu to talk about Microsoft's XBox layoffs. [Image text:] SOURCE:XBOX GAME STUDIOS Bloomberg Radio MICROSOFT Bloomberg 1130 AM 386.91 New York 3.58 0.92%
Microsoft (ORG) Xbox to Cut 3,200 Jobs (ORG) Divest Studios (ORG) Overhaul Jul 6th (EVENT) Overhaul Microsoft Corp.’s (ORG) Xbox (ORG) Asha Sharma (PERSON) Brody Ford (PERSON) Bloomberg Technology (ORG) Bloomberg (ORG) Paul Sweeney (PERSON) Scarlet Fu (PERSON)
Originally published by Bloomberg Technology Read original →

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