Xbox CEO Sharma Has Cut 1,868 Jobs, With More Layoffs Planned

What happened

Fortune reported that Asha Sharma, 38, has cut 1,868 people since Microsoft CEO Satya Nadella put her in charge of Xbox in February. The cuts are part of a plan to reduce headcount by 3,200 over the next year, and she has also removed several management layers. Citing people familiar with the plans, Fortune said further layoffs are scheduled for November and January, though it noted that such plans can change. Sharma replaced Phil Spencer and had no prior video game experience.

Fortune described Xbox as a $21 billion business with weak finances and a market share well below its peak. It cited a Microsoft profit-margin measure of around 3% for the unit. Sharma has divested or reorganized smaller studios and is directing money toward its biggest franchises, including Blizzard Entertainment. Fortune also reported that Xbox plans a Game Pass overhaul, a next-generation handheld by the 2027 holiday season and a new console by the 2028 holidays.

The layoffs have had a human cost, according to Fortune. Some employees value Sharma's transparency, but spreading the cuts over several waves has left others feeling they are under a yearlong cloud. Fortune found at least one laid-off employee who was later offered a chance to stay. Sharma told Fortune her team is trying to get done "an inordinate amount of things in an inordinate amount of time." She also said she does not intend to be transactional with staff. Fortune added that industry observers question how committed Microsoft is to gaming over the long term.

What this means for job seekers

Microsoft has 50 open roles on talentdpro, according to the site's database, and its company page lists them. The most common locations are Redmond, Washington; Mountain View, California; and Atlanta, Georgia. The top role categories are IT/Software, Research & Science and Core Engineering. Current listings include data center technician internships and a business program management internship. The data does not identify any of these as Xbox roles.

If you are applying to Microsoft or any company in the middle of restructuring, there are a few practical steps. First, read each posting for the specific team or business unit, and ask interviewers how that team is funded and whether its headcount is expected to change. Second, apply to several teams rather than one, since Fortune's reporting shows cuts and priorities can differ sharply between units. Third, keep a record of projects and results you can show quickly, so you can move fast if a team changes direction.