Xbox CEO Plans More Layoffs Amid Restructuring

Xbox CEO Asha Sharma is reportedly planning additional rounds of layoffs to occur this month and in January. These planned staff reductions follow a significant organizational "reset" announced in July, which detailed layoffs affecting 3,200 staffers over Microsoft's fiscal year 2027. Earlier, in September, approximately 260 employees were laid off.

Sharma's strategic changes have also involved allowing game studios Double Fine and Compulsion Games to regain independence, while the future of Ninja Theory, the developer behind Senua's Saga, remains uncertain, with potential closure being considered.

Amidst these adjustments, speculation has surfaced regarding a possible spin-off or sale of the Xbox division. However, Judson Althoff, CEO of Microsoft's commercial business, has publicly dismissed such ideas, stating that Xbox is not a business slated for sale. Sharma herself recently affirmed to The New York Times that "Xbox is not for sale."

Further insights into Microsoft's future plans suggest the company is preparing to launch a "next-generation handheld device" in 2027. Additionally, a new console, codenamed Project Helix, is anticipated to be released in 2028.