- Reaction score
- 1,939
Xbox CEO Asha Sharma, roughly 100 days into her tenure, delivered a blunt assessment of Microsoft’s gaming business in a memo to employees Wednesday, saying that heavy spending with thin profit margins and declining revenue “cannot continue.”
The memo, posted publicly on the Xbox blog, came as Bloomberg News reported that the division is planning major job cuts next month, soon after the close of Microsoft’s fiscal year on June 30. Xbox is also planning significant cuts to marketing and other budgets, according to the report.
The exact scale of the layoffs is not yet clear. Microsoft declined to comment. The Verge also reported that Xbox “will be hit with significant layoffs next month,” citing people familiar with the plans.
Sharma’s memo did not mention layoffs but described a business that needs a sweeping reset. She and Xbox content chief Matt Booty, who co-signed the memo, cited rising hardware component costs, an overextended studio system, and aging platform infrastructure among the challenges facing the division.
The memo, posted publicly on the Xbox blog, came as Bloomberg News reported that the division is planning major job cuts next month, soon after the close of Microsoft’s fiscal year on June 30. Xbox is also planning significant cuts to marketing and other budgets, according to the report.
The exact scale of the layoffs is not yet clear. Microsoft declined to comment. The Verge also reported that Xbox “will be hit with significant layoffs next month,” citing people familiar with the plans.
Sharma’s memo did not mention layoffs but described a business that needs a sweeping reset. She and Xbox content chief Matt Booty, who co-signed the memo, cited rising hardware component costs, an overextended studio system, and aging platform infrastructure among the challenges facing the division.
