Microsoft CEO Satya Nadella publicly supported the ongoing restructuring at Xbox, led by CEO Asha Sharma. Nadella stated that he is pleased to see the team streamlining its operations to build a sustainable business model for both PC and console platforms.
The Xbox division has significantly reduced its workforce this year. Following an initial layoff of 1,600 employees, the company recently cut an additional 268 positions. This reorganization includes merging several game studios and adjusting the development strategy for major franchises like Halo.
Asha Sharma justified the restructuring by noting that Xbox profit margins currently lag behind competitors by a factor of 3 to 10. Matt Booty, the Chief Content Officer, confirmed that approximately three-quarters of the planned layoffs have been completed, with further adjustments expected by the end of the fiscal year.
