The "Reset" Button: Xbox's Desperate Gamble Asha Sharma's memo to Xbox staff presents a grim diagnosis: the company needs a drastic overhaul to stay afloat.
To achieve this, thousands of employees will be laid off and game studios will be spun off or shut down entirely.
The numbers are stark: 3,200 jobs will be cut throughout fiscal year 2027, with half eliminated immediately. This is part of a broader Microsoft layoff that totals around 4,800 roles – approximately 2% of the company.