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Tom’s Hardware
Tom’s Hardware
Technology
Andrew E. Freedman

Microsoft 'resets' Xbox by cutting 3,200 jobs this year, divesting five game studios — firm cites 'margins that are 3-10x lower than comparable platform and publishing businesses'

Xbox logo.

Microsoft's gaming division, Xbox, will eliminate approximately 3,200 jobs over its 2027 fiscal year in an attempt to turn around its floundering business. The cuts include offloading four studios with plans to spin off another, though no announced first-party games are being canceled.

Around 1,600 of those jobs are being eliminated today, and the rest will occur throughout the rest of the year.

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