Microsoft's Xbox to Cut 4,800 Jobs Amid 'Severe Hardware Crisis'
Microsoft's Xbox division will cut 4,800 jobs, or 2.1% of its workforce, in a bid to 'reset' the gaming division. The layoffs are part of a year-long restructuring plan, with 1,600 jobs cut immediately and another 3,200 by the end of 2027. Xbox CEO Asha Sharma cited the 'most severe hardware crisis' in industry history as the reason for the cuts.
Key points
- Microsoft's Xbox division will cut 4,800 jobs, or 2.1% of its workforce, in a bid to 'reset' the gaming division.
- The layoffs are part of a year-long restructuring plan, with 1,600 jobs cut immediately and another 3,200 by the end of 2027.
- Xbox CEO Asha Sharma cited the 'most severe hardware crisis' in industry history as the reason for the cuts.
- None of the company's first-party publicly announced games or projects are being cancelled in connection with the layoffs.
- Helen Chiang has been promoted to Chief Operating Officer, reporting directly to the CEO.
- Several laid off employees expressed disappointment and sadness on LinkedIn, while others sought support for themselves and their remaining colleagues.
Microsoft's Xbox division is undergoing significant changes as part of a year-long restructuring plan. The plan involves cutting 4,800 jobs, or 2.1% of the division's workforce, with 1,600 jobs cut immediately and another 3,200 by the end of 2027.
The layoffs are part of a broader effort to 'reset' the gaming division, with Xbox CEO Asha Sharma citing the 'most severe hardware crisis' in industry history as the reason for the cuts. The crisis has led to a decline in revenue and a need for the division to streamline its operations and staff.
While the layoffs are significant, Microsoft has emphasized that none of the company's first-party publicly announced games or projects are being cancelled in connection with the layoffs. Helen Chiang has been promoted to Chief Operating Officer, reporting directly to the CEO.
The restructuring plan has been met with mixed reactions from employees, with some expressing disappointment and sadness on LinkedIn. Others have sought support for themselves and their remaining colleagues as they navigate the changes ahead.
Sources
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