Bloomberg claims Xbox is preparing significant layoffs and new cuts for July

A report points out that the restructuring will be one of the first major decisions of Asha Sharma.

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Xbox may be facing a new era of significant internal changes. According to a report by Bloomberg, Microsoft’s gaming division is preparing for a significant round of layoffs, which is expected to take place in July, coinciding with the end of the company’s current fiscal year.

For now, the exact scope of the measures is unknown, and Xbox has declined to comment on the information, but the report suggests that there will not only be staff adjustments but also a significant reduction in marketing budgets and other areas of the business.

Bloomberg points to a major restructuring at Xbox

The report, written by journalist Jason Schreier, claims that these moves are part of the strategy driven by Asha Sharma, who took over as Xbox’s CEO in February.

• In recent days, Sharma herself had publicly acknowledged that the company needed to “restart the business”, admitting that the current situation was not ideal. Additionally, in an internal message sent to employees, also known to Bloomberg, the executive explained that Xbox had invested over $20 billion in content, platform, and hardware over the past five years, while annual revenues had decreased.

The report also links this possible restructuring to other recent strategic changes, such as the return of certain console exclusives and the review of the multi-platform policy. According to Bloomberg, there were even plans to launch some projects on other platforms that were eventually modified by the new management.

• All of this comes at a particularly delicate time for Xbox, which continues to face a decline in hardware sales, strong competition in the market, and the need to redefine its strategy for the coming years.

For now, there is no official confirmation on the number of employees affected or which teams may be involved. We will have to wait for the coming weeks to see if this information materializes and what the real impact of the new roadmap driven by Asha Sharma and her team will be.