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Xbox is in for another round of major layoffs in July, as CEO Asha Sharma stated that an overhaul of Microsoft’s gaming division will begin in the days ahead. As of this writing, it is currently unclear how many jobs at Xbox and its various gaming subsidiaries will be affected by the impending cuts.
Xbox Will Make Some Major Job Cuts in July
Days after the Xbox Games Showcase, Xbox is already planning a reset of its company infrastructure. In a letter sent to Xbox staff members on July 10, Sharma laid out some key points of the overhaul, which included a rebuild of the company’s platform infrastructure. While Sharma did not outright state in her letter that any layoffs would happen, sources stated that the job cuts are expected to happen after Microsoft’s current fiscal year closes on Tuesday, June 30. Xbox is stated to cut marketing budgets and other areas of the company, though the extent of the cuts remains unknown. Sharma said that the company’s profit margin had dropped year-on-year to 3%. Sharma said that, excluding the acquisition of Activision Blizzard, Xbox spent over $20 billion over five years on ongoing investments, with annual revenue declining by nearly half a billion in that time.
Source: Bloomberg
