Gaming Platform Market: Microsoft Restructures Xbox, Cuts About 3,200 Jobs

Microsoft will cut roughly 3,200 jobs in its Xbox games division — about one-fifth of the unit’s workforce — as part of a major restructuring described by Xbox head Asha Sharma as a “reset.” The reorganisation aims to simplify decision‑making by reducing management layers (some teams reportedly had 14 levels) down to three-to-five levels. An initial 1,600 positions are being eliminated immediately, with the remainder to be removed within 12 months. Four game-development studios will leave Microsoft. The company framed the move as the most significant overhaul in Xbox history, citing declines in player numbers and engagement and referencing the earlier $69 billion acquisition of Activision Blizzard at the end of 2023. Sharma said the changes target future growth and an ambition to reach over one billion daily users.