Microsoft (MSFT) on Monday announced it is cutting 4,800 roles across the company, roughly 2.1% of its workforce. The bulk of the layoffs, 3,200, will come from Microsoft's Xbox division.
According to Xbox CEO Asha Sharma, the first round of cuts includes 1,600 employees today. The company is also moving four studios — Ninja Theory, Undead Labs, Compulsion Games, and Double Fine Productions — to outside management and is working to sell or spin off a fifth, Arkane Studios, in France.
"Our business today is not healthy. We are operating at margins that are 3-10x lower than comparable platform and publishing businesses. In a typical year, we lost 64 cents for every dollar we invested," Sharma wrote in an email to employees.
Sharma, who took the reins of Microsoft's gaming division in February, has made several statements over the last few months about working to address Xbox's shortcomings. She's also taken steps to reduce the price of the company's subscription gaming service and improve branding.
But Monday's move was her most consequential yet.
According to Xbox CEO Asha Sharma, the first round of cuts includes 1,600 employees today. The company is also moving four studios — Ninja Theory, Undead Labs, Compulsion Games, and Double Fine Productions — to outside management and is working to sell or spin off a fifth, Arkane Studios, in France.
"Our business today is not healthy. We are operating at margins that are 3-10x lower than comparable platform and publishing businesses. In a typical year, we lost 64 cents for every dollar we invested," Sharma wrote in an email to employees.
Sharma, who took the reins of Microsoft's gaming division in February, has made several statements over the last few months about working to address Xbox's shortcomings. She's also taken steps to reduce the price of the company's subscription gaming service and improve branding.
But Monday's move was her most consequential yet.
26 days ago
