Xbox Braces for Major Layoffs and Deep Budget Cuts

Microsoft's Xbox division is gearing up for a brutal round of layoffs, according to sources familiar with the company's plans. The cuts are expected to hit next month, accompanied by significant budget reductions targeting marketing and other operational areas.

The moves will mark the first major cuts under Asha Sharma's leadership at the division. Bloomberg's Jason Schreier reports the restructuring reflects a broader strategic shift within Xbox.

Details on exact headcount reductions remain unclear, but sources describe the planned layoffs as "major" — suggesting this isn't a modest trim. Marketing appears to be taking a particularly heavy hit.

Microsoft has been on a cost-cutting tear across multiple divisions in recent years, and Xbox is now squarely in the crosshairs. The July timeline gives affected employees precious little runway to prepare.