Microsoft Cuts 4,800 Jobs in Xbox Restructuring
Microsoft is cutting 4,800 jobs across its business. That is 2.1% of all its workers.
The cuts hit its commercial business and Xbox gaming group. Xbox alone is losing 1,600 jobs right away.
Xbox CEO Asha Sharma said around 3,200 Xbox jobs will go during 2027. She called it the biggest restructuring in Xbox history.
Another 1,600 Xbox cuts will follow later this year. Microsoft also plans to split off four gaming studios from Xbox.
Two of those studios are Compulsion Games and Double Fine Productions. Both will become independent companies again.
Xbox has been under pressure from low profits and falling hardware sales. Sharma said Xbox margins are 3 to 10 times lower than similar businesses. Xbox revenue has been shrinking in recent periods.
Klear Note — Xbox is Microsoft's gaming division that makes consoles and games. Gaming companies often restructure when profits drop or competition increases.
Key Terms 4
- restructuring Reorganizing a company by cutting jobs or changing how it works
- spin off When a company separates part of itself into a new independent business
- margins The profit a company keeps after paying its costs
- fiscal year 2027 Microsoft's business year running through mid-2027