Microsoft's Xbox plans major layoffs in July: Report

Microsoft's Xbox is planning major layoffs for july 2026.

As reported by Bloomberg, the gaming platform Xbox aim to cut costs for marketing and other budgets.

The company's new lay offs would mark as the first major restructuring under CEO Asha Sharma, who took charge of the gaming unit in February.

The decision came after Xbox has faced mounting challenges in recent years as Microsoft's bet on subscriptions and cloud gaming failed to offset declining console sales and a shortage of blockbuster titles.

Sharma said Xbox's accountability margin had fallen to 3% and that the company had spent more than $20 billion on content, platforms and hardware subsidies over the past five years even as annual revenue declined by nearly half a billion during ‌that period, Bloomberg reported, citing an internal email to employees.

She said Xbox would need to rebuild its platform infrastructure and rethink its portfolio in the weeks and months to come, the report said.

According to the report, the exact scale of layoff is not yet clear. It is expected shortly after the close of Microsoft's fiscal year on June 30.

In April, Microsoft lowered prices for its Game Pass service and ended day-one releases of future "Call of Duty" titles on the platform, marking one of the first major strategy changes under the new gaming chief.