Xbox Cuts 3,200 Jobs, Pivots to Blockbuster Franchises After Game Pass Bet Falters
Updated
Updated · bbc.co.uk · Jul 15
Xbox Cuts 3,200 Jobs, Pivots to Blockbuster Franchises After Game Pass Bet Falters
3 articles · Updated · bbc.co.uk · Jul 15
Summary
About 3,200 Xbox employees—roughly 20% of staff—were laid off, with 1,600 cut immediately and another 1,600 due over the next 12 months.
Asha Sharma, who became Xbox CEO in February, says the cuts are part of a business reset that shifts resources toward major series such as Fallout and The Elder Scrolls to deliver new releases faster.
Former developers say the scale of the layoffs stripped out hard-won expertise, including nearly 100 jobs at id Software and deep cuts at ZeniMax Online that they warn will slow game updates.
The strategy marks a turn away from Phil Spencer's broad Game Pass push, which reports say underperformed, as Xbox also faces soaring development costs after years of pandemic-era expansion and acquisitions.
CWA-affiliated unions plan rallies at six Microsoft sites to press for severance, transfers and possible reinstatements, while remaining staff face uncertainty with half the cuts still ahead.