Microsoft's Xbox plans for major layoffs next month, Bloomberg News reports
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
June 10 : Microsoft's Xbox division is planning major layoffs next month and significant cuts to marketing and other budgets, Bloomberg News reported on Wednesday.
The job cuts would mark the first major restructuring under Asha Sharma, who took charge as CEO of the gaming unit in February.
Microsoft did not immediately respond to a Reuters request for comment.
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.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
Sharma said Xbox's accountability margin had fallen to 3 per cent 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.
The exact scale of layoff is not yet clear. It is expected shortly after the close of Microsoft's fiscal year on June 30, according to the report.
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.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app