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Microsoft is eliminating 3,200 jobs from its Xbox gaming division and divesting five smaller studios, new Xbox CEO Asha Sharma announced, in what the company has framed as an "Xbox reset." Half of those cuts take effect immediately; the remainder will follow by the end of Microsoft's fiscal year 2027, which closes June 30, 2027.
A person familiar with the matter told CNBC the reductions amount to roughly 20 percent of Xbox's total divisional headcount.
The Numbers Behind the Reset The Xbox-specific layoffs come alongside 1,600 additional cuts across the rest of Microsoft. Combined, the company is reducing its global workforce by just over 2 percent.
The Seattle Times reported that Microsoft's overall headcount has remained relatively stable, with hiring elsewhere in the company offsetting the announced reductions.
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