Reports say Microsoft’s Xbox division is preparing a significant round of job cuts next month as new leadership implements a broader business “reset.” Multiple outlets, citing Bloomberg, report that Asha Sharma—who became Xbox CEO in February—plans major restructuring beginning in July, with the exact number of affected roles not confirmed. Media coverage also links the layoffs to additional cost reductions, including “significant” budget cuts described as affecting marketing and other areas.
Several reports frame the moves as the first major personnel changes under Sharma. They also point to wider operational concerns she outlined internally, including financial pressure and declining revenue trends, and a platform infrastructure that she describes as overly complex. Sharma’s memo also cites difficulties producing consoles at scale due to a hardware component crisis, with storage-related component costs reportedly rising sharply over recent months.
Other reporting notes that alongside the anticipated workforce changes, Xbox has seen executive departures and additional corporate decisions under Sharma’s tenure, including a reported studio closure plan. Microsoft and Xbox were said to be contacted for comment, but details of the layoffs’ scope remain unclear.
