Xbox is planning a significant round of layoffs in July, the first major personnel move under recently appointed CEO Asha Sharma. The company confirmed the downsizing but did not specify how many employees would be affected or which teams would face cuts.
A new CEO's first big call
Sharma took over as Xbox's chief executive earlier this year, succeeding previous leadership. The planned layoffs mark her first visible restructuring effort. Industry observers are watching closely to see whether the cuts signal a shift in strategy or a cost-cutting measure after years of aggressive hiring across the gaming sector.
The announcement comes without details on severance packages, whether the layoffs will be worldwide, or if any studios or projects will be shuttered. Employees have been left in the dark about the scope of the reduction, according to people familiar with the matter.
What's at stake for Xbox
The layoffs arrive at a time when the broader gaming industry is grappling with slower post-pandemic growth and rising development costs. Xbox, which competes with Sony's PlayStation and Nintendo, has recently invested heavily in game pass subscriptions and studio acquisitions. It's unclear whether the job cuts will affect those priorities.
Sharma has not publicly elaborated on the reasons behind the layoffs. A company spokesperson declined to comment on the record for this story.
Unanswered questions
With July just weeks away, employees and the wider gaming community are waiting for more concrete information. Which regions and departments will take the biggest hit? Will the cuts touch Xbox's hardware teams or its cloud gaming division? For now, Sharma and the rest of Xbox's leadership have not provided answers.
