Microsoft Cuts 3,200 Xbox Employees, Divests Five Studios on July 6

According to Microsoft, on July 6, Xbox announced 3,200 layoffs and the divestment of five studios, with half of the cuts taking effect immediately and the remainder by the end of fiscal 2027. The layoffs represent roughly 20 percent of the Xbox division. New Xbox CEO Asha Sharma said the restructuring aims to simplify decision-making by reducing management layers from 14 to a maximum of 5.
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