Xbox CEO Asha Sharma Announces 3,200 Layoffs by Fiscal 2027

The layoffs will occur over the course of fiscal 2027, which runs from July 2026 to June 2027. Sharma described the move as part of the 'biggest restructuring' in the gaming business's history, though she did not specify which teams or projects would be affected.

The announcement comes as Microsoft continues to integrate its $68.7 billion acquisition of Activision Blizzard, which closed in October 2023. The company has already cut over 2,500 gaming jobs since the deal, including 1,900 in January 2024 and 650 in September 2024.

Sharma, who became CEO of Xbox in 2023, said the restructuring is intended to streamline operations and focus on 'high-impact' areas. She emphasized that the cuts are part of a long-term strategy to ensure the gaming division remains competitive in a rapidly evolving market.

The job reductions are expected to be completed by the end of fiscal 2027. Microsoft has not yet announced which specific roles or locations will be impacted, but the company said it will provide severance and support to affected employees.

The announcement has raised concerns among industry analysts about the broader health of the gaming sector, which has seen widespread layoffs in recent years. Microsoft's gaming division remains one of the largest in the world, with major franchises including Halo, Minecraft, and Call of Duty.