Xbox CEO Asha Sharma Announces 3,200 Layoffs by Fiscal 2027

Xbox CEO Asha Sharma said Microsoft will eliminate 3,200 jobs during fiscal 2027 as part of the largest restructuring in the gaming business's history.

The layoffs will affect employees across Xbox's global operations, though Sharma did not specify which divisions or regions would be most impacted.

The cuts represent a significant reduction in Microsoft's gaming workforce, which includes studios like Bethesda and Activision Blizzard following the company's $69 billion acquisition of Activision.

Sharma described the restructuring as necessary to align the gaming division with long-term strategic priorities, but provided no further details on how the job reductions would be implemented.