Microsoft's Xbox division to cut jobs in July

Microsoft's Xbox division is preparing for significant layoffs next month as part of a broader corporate reset aimed at reversing declining revenues, new CEO Asha Sharma confirmed this week. The planned job cuts, expected to begin in July, follow a year of financial struggles and come despite a recent showcase of upcoming games intended to reinvigorate the brand.

In a recent statement, Sharma and other executives outlined the need for a fundamental reset, noting that Xbox has lost nearly half a billion dollars in annual revenue over a period during which it invested over $20 billion in content, platform, and hardware subsidies. The company reported a 7% decline in overall gaming revenue for a recent period, with hardware revenue falling 33% and content and services revenue down 5%. The upcoming layoffs, which could include the closure of at least one studio, are a central component of the new strategy.

The reset also includes a renewed commitment to Xbox console exclusives and hardware. Sharma and Chief Strategy Officer Matthew Ball have emphasized that the company has no desire to move away from the console business, which they describe as a stable, multi-billion dollar market....