Microsoft announces 3,200 job cuts in Xbox business
Microsoft announced on Monday that it will lay off approximately 3,200 employees within its Xbox video games division. In an internal message, Xbox Chief Executive Asha Sharma characterized the layoffs as the "most significant restructure" in the company's history.
- Economy
- DPA
- Published Date: 07:11 | 06 July 2026
Microsoft announced on Monday that it is cutting around 3,200 jobs in its Xbox video games division, in what Xbox chief executive Asha Sharma described as the "most significant restructure" in her company's history.
"Our business today is not healthy," Sharma said in an email to staff shared on X.
She said some work currently passes through too many layers of management and that the complex organizational structure slows down decision-making. The "reset" will reduce management to a maximum of five layers, and only three where possible, she said.
Sharma said 1,600 jobs will be cut immediately, with the remainder to be finalized within 12 months. In addition, four game development studios are to leave the group, she said.
The chief executive noted that the number of players and the time spent gaming on Xbox platforms has fallen in recent years.
Sharma wrote that the restructuring was aimed at future growth for the Xbox business, and that she wanted the firm to eventually reach more than 1 billion daily users.
Microsoft has already cut thousands of video game jobs since completing its roughly $69 billion acquisition of the studio Activision Blizzard at the end of 2023.
"Our business today is not healthy," Sharma said in an email to staff shared on X.
She said some work currently passes through too many layers of management and that the complex organizational structure slows down decision-making. The "reset" will reduce management to a maximum of five layers, and only three where possible, she said.
Sharma said 1,600 jobs will be cut immediately, with the remainder to be finalized within 12 months. In addition, four game development studios are to leave the group, she said.
The chief executive noted that the number of players and the time spent gaming on Xbox platforms has fallen in recent years.
Sharma wrote that the restructuring was aimed at future growth for the Xbox business, and that she wanted the firm to eventually reach more than 1 billion daily users.
Microsoft has already cut thousands of video game jobs since completing its roughly $69 billion acquisition of the studio Activision Blizzard at the end of 2023.
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