Xbox to lay off hundreds of employees this week, plans to consolidate game studios: Report
Follow UsXbox is reportedly preparing to lay off hundreds of employees this week.
The company also plans to consolidate several of its game studios
The latest cuts were expected, as CEO Asha Sharma said in July that Xbox would eliminate 1,600 roles by the end of the year.
Xbox is reportedly preparing to lay off hundreds of employees this week as part of restructuring. According to a report by The Information, the company also plans to consolidate several of its game studios. The latest layoffs would be the second major round of staff reductions at Xbox this year. The move comes as Xbox CEO Asha Sharma is looking to improve the gaming unit’s profit margins and change how the company manages its game development business.
SurveyThe latest cuts were expected, as Sharma told employees in July that Xbox would eliminate 1,600 roles by the end of the year. This was in addition to 1,600 positions that the company had already cut that month.
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Xbox also made changes to its studio business at the time. The company sold four of its game studio subsidiaries as part of a broader restructuring of its gaming operations.
Sharma has been working to change Xbox’s strategy since taking charge of the gaming business earlier this year. One of the key areas of focus has been improving profit margins, which have reportedly remained behind those of other companies in the gaming industry.
As part of the new strategy, Xbox is putting more focus on major game franchises. The company plans to develop more games from its well-known franchises such as Elder Scrolls and Fallout. At the same time, it is reducing its focus on some of the smaller studios it acquired in recent years.
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The restructuring comes as Microsoft looks to make its gaming business more efficient. Microsoft CEO Nadella and CFO Amy Hood have previously discussed the possibility of restructuring Xbox or even spinning the unit out entirely.
The latest layoffs and studio consolidation appear to be part of the wider effort to reshape Xbox and focus its resources on bigger franchises and projects.
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