The largest restructuring in the history of Microsoft’s Xbox is accelerating, in what Asha Sharma, its chief executive, described as a fundamental reset of how Xbox operates and invests.
Sharma unveiled sweeping changes at the gaming unit Monday, primarily layoffs that will affect roughly 3,200 people, or 20% of staff—1,600 employees will be affected immediately, and the other 1,600 are expected to be cut over the next year. The cuts are part of a broader workforce reduction at Microsoft announced Monday that is expected to impact about 2% of its 228,000 employees. Xbox is also spinning off four of its studios.
