Microsoft announced sweeping restructuring of its Xbox gaming division on Tuesday. As part of what is described as the biggest reset in Xbox’s history, the company is laying off approximately 3,200 employees and spinning off four game development studios. Xbox CEO Asha Sharma said the restructuring is aimed at simplifying operations, reducing costs, and returning the business to growth by 2027. The changes come amidst sluggish growth in the core Xbox business, weaker Game Pass adoption, and mounting pressure on the gaming industry.
