Xbox CEO Asha Sharma has announced a major restructuring plan that includes laying off 20% of the company's workforce to refocus operations on the core flagship console business.
Key Points
- The restructuring impacts approximately 3,200 employees as part of a broader 2% workforce reduction across Microsoft.
- Xbox is spinning off four internal game studios to streamline operations and reduce organizational bloat.
- The company aims to pivot resources back to its flagship console, which currently accounts for 80% of its total business revenue.
- CEO Asha Sharma cited a need to correct past strategic overextension that caused the division to lose focus on its primary products.