Sunday, July 12, 2026
Technology

Xbox warns of a ‘reset’ as it prepares for layoffs

Microsoft's Xbox division will be hit with significant layoffs next month, according to people familiar with Microsoft's plans. The company has been preparing for the layoffs internally for weeks, with Xbox CEO Asha Sharma hinting about "making hard choices" last month. Sources suggest the cuts coul...

Xbox warns of a ‘reset’ as it prepares for layoffs
Image: The Verge

Microsoft's Xbox division will be hit with significant layoffs next month, according to people familiar with Microsoft's plans.

The company has been preparing for the layoffs internally for weeks, with Xbox CEO Asha Sharma hinting about "making hard choices" last month. Sources suggest the cuts could even involve a studio closure, or changes to the Xbox studio lineup. In a recent Giant Bomb episode, rumors of 1,000 layoffs for Microsoft's Xbox division were mentioned. Bloomberg also reported today that the cuts would be "major."

Shortly after Bloomberg's report, Xbox CEO Asha Sharma and chief content officer Matt Booty sent a memo to Xbox …

Read the full story at The Verge.

Originally published at The Verge

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