Microsoft Cuts 4,800 Jobs As Asha Sharma Reshapes Xbox

India-West News Desk

REDMOND, WA-Xbox is set for its biggest restructuring since becoming part of Microsoft, with CEO Asha Sharma outlining thousands of job cuts, leadership changes and a major overhaul of the gaming division’s operations in a memo to employees.

Calling it “the most significant restructure in Xbox history,” Sharma said about 1,600 positions are being eliminated immediately. The division will reduce its workforce by about 3,200 roles by the end of Microsoft’s 2027 fiscal year. Four Xbox studios will also move out of the company’s ownership as part of the restructuring.

The overhaul is part of Microsoft’s broader decision to eliminate 4,800 jobs across the company, with the Commercial and Xbox businesses accounting for most of the reductions.

“I know this is painful,” Sharma wrote. “Today’s decisions do not reflect their talent or dedication.”

In the memo, Sharma said the restructuring follows years of investment that did not deliver the growth Xbox had anticipated. While Game Pass, multiplatform gaming and a broader portfolio of studios created value, she said they failed to expand as expected, leaving the company’s core gaming business under pressure. She also cited what she described as “the most severe hardware crisis in its history” facing the gaming industry.

Sharma said none of Xbox’s publicly announced first-party games or projects are being canceled as part of the changes.