Microsoft Xbox Preparing for Significant Layoffs Amid 'Reset'
Microsoft is preparing to implement significant layoffs within its Xbox division, according to people familiar with the company's plans.
The company has been internally preparing for the cuts for weeks. Xbox CEO Asha Sharma hinted at the coming changes last month, mentioning that the team would be "making hard choices." Sources speaking to Bloomberg indicated the cuts would be "major" and include budget reductions for marketing and other areas of Microsoft's Xbox business.
Rumors of approximately 1,000 potential layoffs were first reported on the Giant Bomb podcast. The cuts could potentially involve the closure of a gaming studio or significant changes to the current Xbox studio lineup.
The layoffs are expected to take effect next month as part of what internal sources describe as a broader "reset" for the Xbox division.