{"id":2490587,"date":"2026-07-06T18:19:44","date_gmt":"2026-07-06T18:19:44","guid":{"rendered":"https:\/\/celebrity.land\/en\/?p=2490587"},"modified":"2026-07-06T18:19:44","modified_gmt":"2026-07-06T18:19:44","slug":"xbox-cuts-3200-jobs-as-gaming-business-struggles","status":"publish","type":"post","link":"https:\/\/celebrity.land\/en\/xbox-cuts-3200-jobs-as-gaming-business-struggles\/","title":{"rendered":"Xbox cuts 3,200 jobs as gaming business struggles"},"content":{"rendered":"

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Xbox is hitting the reset button.<\/p>\n

Microsoft<\/a>\u2019s<\/a> video game division plans to eliminate 3,200 jobs, or around 20% of its staff over the next year, as part of a sweeping reorganization to revive the company\u2019s lagging games division. <\/p>\n

The cuts are driven by an increasingly challenging gaming landscape<\/a>, said Xbox\u2019s CEO Asha Sharma in a note to staff on Monday.<\/p>\n

\u201cOur business today is not healthy,\u201d Sharma wrote, adding that Xbox is operating at margins three to 10 times lower than comparable businesses. \u201cWe must reset Xbox.\u201d<\/p>\n

Although it has made some major investments, including the $69 billion acqusition of Activision Blizzard<\/a> in 2023, Xbox hasn\u2019t produced enough hit games as it has faced mounting competition.<\/p>\n

The Redmond, Washington-based company has laid off thousands of staff and canceled many projects<\/a> since the acquisition of Santa Monica-based Activision, best known for its popular \u201cCall of Duty\u201d franchise.<\/p>\n

Some of the company\u2019s biggest rivals are Sony\u2019s PlayStation, Nintendo Switch and Steam, the digital storefront for PC games.<\/p>\n

These layoffs are a part of a bigger effort to downsize Microsoft. In all, the tech giant is eliminating about 2% of its workforce.<\/p>\n

At Xbox, 1,600 jobs will be cut on Monday, the rest over the next 12 months, the company said. <\/p>\n

In addition to slashing its workforce, the company is shedding four of its studios. Montreal-based Compulsion Games and San Francisco-based Double Fine Productions will be spun out and returned to private ownership. Ninja Theory and Undead Labs will be sold to new, undisclosed owners. Sharma said that these businesses added \u201cmeaningful value\u201d to Xbox, but did not grow at the pace they expected.<\/p>\n

\u201cAs that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome,\u201d Sharma said in a statement. \u201cAnd now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.\u201d<\/p>\n

Xbox accounts for roughly 6% of Microsoft<\/a>\u2018s business, but remains one of its most influential brands. The division was launched in 2001 and has become one of the largest presences in the gaming industry. Xbox is known for making gaming consoles and publishing games like \u201cHalo.\u201d<\/p>\n

During Covid-19, the video game industry saw a massive surge as people looked for ways to entertain themselves at home. But, since then, many companies are struggling as they adjust to increased production costs and changes in demand.<\/p>\n

Additionally, investing in artificial intelligence remains a priority for Microsoft. The tech company most recently spent over $100 billion on a partnership with OpenAI. Microsoft has a 27% ownership stake in the startup<\/a>.<\/p>\n

\u201cThese changes are about a bigger future for XBOX, not a smaller one. The next decade of gaming will be larger, more global, and more creative than anything we\u2019ve seen before,\u201d Sharma wrote. \u201cThis year, we\u2019ll invest as much in XBOX as we ever have, but we\u2019ll invest with greater focus, greater discipline, and greater clarity, all in service of making XBOX where the world plays and creates.\u201d<\/p>\n<\/p><\/div>\n

\u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n

\u2018 Some details of this article were extracted from the following source www.latimes.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Xbox is hitting the reset button. Microsoft\u2019s video game division plans to eliminate 3,200 jobs, or around 20% of its staff over the next year, as part of a sweeping reorganization to revive the company\u2019s lagging games division. The cuts are driven by an increasingly challenging gaming landscape, said Xbox\u2019s CEO Asha Sharma in a […]<\/p>\n","protected":false},"author":2,"featured_media":2490588,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[],"class_list":["post-2490587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/07\/Xbox-cuts-3200-jobs-as-gaming-business-struggles.com2Fzbk2Fdamlat_images2FLA2FLA_PHOT.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2490587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2490587"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2490587\/revisions"}],"predecessor-version":[{"id":2490589,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2490587\/revisions\/2490589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2490588"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2490587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2490587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2490587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}