Microsoft cuts 1,600 Xbox jobs and spins off four game studios

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Microsoft announced sweeping layoffs of 4,800 employees, with over 30 percent of cuts hitting its Xbox division. Approximately 1,600 Xbox staff — around 8 percent of the division — are being let go as part of what internal communications describe as a company 'reset.' Four Xbox game studios will be separated from Microsoft and operate independently going forward. The reductions are not limited to a single day, as Microsoft plans to eliminate roughly 15 percent of total Xbox jobs by the end of its financial year in July. Xbox CEO Asha Sharma communicated the scale of the changes to staff via an internal memo.

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