Microsoft is cutting more than 3,000 jobs across its Xbox division as part of a sweeping restructuring of its gaming business.
According to The Wall Street Journal, the company is eliminating approximately 4,800 positions worldwide, including 3,200 within Xbox. Xbox CEO Asha Sharma described the move as “the most significant restructure in Xbox history.”
The reorganization comes as Xbox faces declining revenue and a subscription service that has fallen well short of expectations. Microsoft said the overhaul will take place over the next year and is designed to address slowing growth, shrinking profit margins, and broader challenges facing the gaming industry.
As part of the restructuring, Microsoft plans to reduce management layers, spin out game studios Compulsion Games and Double Fine, and transition Ninja Theory and Undead Labs to new ownership.
The changes mark one of the largest shakeups in Xbox’s history as Microsoft reshapes its gaming operations in response to evolving market conditions and financial pressures.
