Xbox will cut around 3,000 jobs and spin off four game studios in the next year as new chief executive Asha Sharma orders what she calls the 'most significant restructure' in the division's 25‑year history.
In a memo to staff on Monday, Sharma confirmed that about 1,600 Xbox employees are being laid off immediately, with a further wave of redundancies to follow across fiscal 2027, largely affecting teams in Microsoft's gaming arm.
