Xbox CEO Asha Sharma told employees on Monday that the division is undertaking the most significant restructuring in its history by cutting thousands of jobs, describing it as a necessary "reset" of the business rather than a sign of decline.
In an internal memo, which she posted on X, Sharma acknowledged the pain the layoffs would cause, noting they would directly affect people who had poured their creativity into building Xbox, whether they arrived through acquisitions, direct recruitment, or a love of the industry.
