Microsoft closes 4 Xbox studios and cuts 3,200 jobs in major reset

Asha Sharma, the new head of Xbox, has announced a full company reset, declaring the current business model "unhealthy." At least 3,200 Xbox employees will lose their jobs by the end of fiscal year 2027, with 1,600 already notified. Four studios are being removed from Xbox's portfolio. The cuts are part of a broader Microsoft-wide reduction of at least 4,800 positions.