Microsoft Cuts 4,800 Jobs as Xbox Undergoes Major Restructuring
Poinews.com – Microsoft revealed on Monday that it plans to eliminate approximately 4,800 positions worldwide, marking a significant shift in its workforce strategy. This move targets 2% of the company’s total staff, with a notable focus on its Xbox division, which is set for its most extensive restructuring to date.
Leadership Statements on the Reorganization
Xbox CEO Asha Sharma emphasized the urgency of the changes, stating in an email to employees that the division’s current operations are unsustainable. She highlighted the need to address declining margins, which are now three to ten times lower than those of competing platforms.
“Our business today is not healthy,” Sharma wrote. “The industry is facing the most severe hardware crisis in its history. We must reset XBOX.”
Microsoft’s executive vice president, Amy Coleman, echoed this sentiment in a memo, noting that the company’s direction is shaped by external shifts. “Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it,” she asserted.
Impact on Xbox’s Structure and Staff
The layoffs will primarily affect Xbox’s gaming sector, with 3,200 roles expected to be eliminated over the next fiscal year. This includes the closure of four studios, a move that signals a major realignment of the division’s creative output. While automation is transforming internal workflows, Coleman clarified that AI will not replace the dismissed employees.
Among the affected studios, Compulsion Games and Double Fine Productions will transition to independent operations. Meanwhile, Ninja Theory and Undead Labs have agreed to new ownership arrangements. In France, Arkane Studios is initiating mandatory consultations with its works council to evaluate potential restructuring options.
