Xbox to Cut 3,200 Jobs in Major Gaming Overhaul

Microsoft is set to eliminate 3,200 jobs across its Xbox gaming division in one of the largest restructurings in the brand's history, as the company looks to streamline operations and improve profitability.

XBOX Wire

According to reports, the layoffs will affect every Xbox studio and represent roughly 20% of the gaming division's workforce. Xbox CEO Asha Sharma described the move as a necessary "reset," citing declining profit margins, rising development costs and the need to reshape the gaming business for long-term growth.

The Xbox cuts are part of Microsoft's broader workforce reduction announced Monday, which will eliminate approximately 4,800 jobs across the company as it continues investing heavily in artificial intelligence and other strategic priorities.