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EXCERPT:
Microsoft has announced significant workforce reductions affecting its Xbox division and the broader company, the bulk of whom will be replaced by foreign workers. The Xbox unit plans to eliminate approximately 3,200 positions through the end of fiscal year 2027, including about 1,600 role eliminations effective immediately.
These changes form part of a larger restructuring that includes an additional 4,800 positions eliminated company-wide.
Xbox CEO Asha Sharma outlined the moves in a memo to employees. “We are beginning the most significant restructure in XBOX history. After careful consideration, I’ve made the difficult decision to reduce our team by approximately 3,200 throughout FY27. This will include approximately 1,600 role eliminations today, and in addition, four studios will leave XBOX to new management,” she said.
Sharma noted that the business “today is not healthy” and that Xbox is “operating at margins that are 3–10x lower than comparable platform and publishing businesses.” She described the effort as a “reset” to achieve sustainable growth and a return to growth by 2027.