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Xbox CEO Asha Sharma outlines major reset amid cuts

gamingJul 6, 2026432,441

Xbox CEO Asha Sharma announced a sweeping reset that spins off four studios and will cut about 20 percent of Xbox jobs by the end of the financial year in July 2027. Microsoft is laying off 4,800 employees companywide, and Sharma’s memo says roughly 1,600 Xbox roles are affected immediately, with additional reductions to reach the 20 percent target. Double Fine and Compulsion Games are returning to their founders, while Ninja Theory and Undead Labs are being sold with agreements to ensure Senua and State of Decay 3 continue to ship. Sharma said the restructuring is the "most significant" in Xbox history and acknowledged the pain of a year-long process, while insisting no first-party announced games are being cancelled as part of the cuts. Arkane Studios in France is undergoing consultation with its Works Council to review strategic options, leaving the future of Blade uncertain. As part of the reshuffle, Mojang and King will report directly to Sharma and some larger cuts are expected across Bethesda/ZeniMax and other studios. Sharma framed the move as a shift away from owning many smaller indie studios toward focusing on bigger franchises and supporting independent creators through tools and audiences instead of ownership.

Commander Sterling
@commandersterling.bsky.social

Xbox CEO Asha Sharma does the impossible and sounds disconnected from reality by *videogame executive* standards. This is one of the most incredibly ridiculous things I’ve heard in my 20 years of following the game industry.

7541h ago
Mat Piscatella
@matpiscatella.bsky.social

"CEO Asha Sharma wants Xbox to reach 1bn players a day (it currently hits 1bn a year)." Oh.

4482h ago
Quoting this
H.K // デビル零 #PlayMoreVF40

Basically, they want to be as popular as Coca-Cola, except that Coke is cheap, available globally, and doesn’t require an expensive console/PC and Internet to consume

Garota de hambúrguer comendo anime19

É bom ela começar a dar Xbox de graça pra todo mundo então pra conseguir esses números aí

Shaxbert 🔞14

Well shit, as long as we're asking, I want renewable energy, free healthcare for all, trans rights, Constitutional abortion and all billionaires to be taxed back into the middle class- at least that'd be a net good for society

Mark 🔜 Develop Brighton14

Has someone told Asha the really crucial bit of information she seems to be lacking here.

Platy7

"Platy quer ter um salario mensal de 10 mil reais sem fazer nada"

Daryl Baxter6

They shouldn’t have held a showcase last month. Amongst many other things they shouldn’t have done over the last few years.

Andrew5

I wonder if this is a case of A) she’s an idiot or B) she thinks the people she’s talking to are idiots

Ryan Higgins4

It's nice to have dreams.

chris2k4

Thousands of competent workers that actually get shit done and have become experts in their fields through sweat and tears losing their job security, and the person sitting on the gold throne at the top sustained by the corpses of laborers uttering one of the dumbest things imaginable 👍

Igor Pontes3

HAHAHAHAHAHAAHAHAHAHAHAHAAHAHAHAHAHAHAHAAHAHAHAHAHAAHAHAHAHAHAHAHAHAHAHAAHAHAHAHAHAHAHAHAHA AGORA FAZ SENTINDO ELA COLOCANDO A MOJANG E A KING NO BRAÇO DE XBOX HAHAHAAHHAAHAHAHAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA E EU SOU DOIDO DE CRITICAR

Kotaku
@kotaku.com

Xbox is preparing to lay off around 3,200 individuals, part ways with Compulsion Games, Double Fine, Undead Labs, Ninja Theory, and possibly Arkane Lyon in what CEO Asha Sharma is calling "the most significant res... https://kotaku.com/xbox-layoff-3200-most-significant-restructure-history-2000712836

693h ago
Quoting this
Matt McMuscles482

Turns out the secret to the problem of not having any exclusive games to attract new customers is get rid of the studios that were making you exclusive games.

Jaina Rodríguez-Grey103

In 2025, Xbox made about 24 billion. Conservatively, that means about 700 million of that was profit. In a year with wars on 2 (sometimes 3) continents, broken supply chains, economic downturn, and skyrocketing hardware prices, Xbox still made almost a billion in net profit and it wasn’t enough.

Jimmy's Hell Cousin31

I don’t know why this isn’t being reported as a company buying up an entire industry, extracting all the money from it to power their plagiarism machine, and then laying everyone off destroying said industry

Sherveen Uduwana28

Really hate the framing of these layoffs as a reset when they've been doing layoffs again and again for the past two years. Despite admitting they had a 3% profit margin (AFTER all their acquisitions) this fiscal year. Profitable, Just not as much as their competitors. So lay everyone off I guess

Jiikae24

Past week has felt like the E3 of bad gaming news

REVY24

‘Most Significant Restructure In Xbox History’ And it's just firing and selling everyone 🫩

𝕮0𝖋𝖋𝖎𝖓𝕮𝖚𝖓𝖙20

Fuck @microsoft.com Fuck @xbox.com fuck every one of these vampires (derogatory). I genuinely can't wait to see these businesses crash and fucking burn.

functional moron20

it’s weird to have lived through the very brief window where tech advancements actually did make life more fun

Alasdair Stuart19

You don't get to blow up 3,200 lives and call it 'a significant restructure' like you're moving around fucking parking spaces.

👑TTTTTsd👑18

Rake stepping was being too kind I must concede. This is more akin to putting yourself in a washing machine and turning it on

Stephen Totilo
@stephentotilo.bsky.social

Microsoft's new gaming cuts, some 3,200 jobs impacted through June 2027, follow cuts of over 2,500 in 2024 and scores in 2025 A brutal sequence of events The latest round, under Xbox's new CEO, spins out smaller studios and slashes Xbox platform team www.gamefile.news/p/xbox-to-cu...

732h ago
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