Windows Central Insider
According to Bloomberg, Xbox is expected to have significant layoffs next month. The publication states:
“'The layoffs, the exact scale of which is not yet clear, are expected shortly after the close of Microsoft’s fiscal year on June 30,' said the people, who asked not to be identified because they’re not authorized to speak to the press. Xbox is also planning to significantly slash budgets for marketing and some other areas of the business, the people said.”
However, Bloomberg also mentions that Xbox declined to comment, which is to be expected.
It's no secret that Xbox hasn't been doing particularly well. In fact, the company has been pretty upfront about it. Xbox CEO Asha Sharma recently went on record saying the business isn't healthy right now, and unfortunately, layoffs often become part of that reality.
We do get a few more details directly from Xbox, which I or someone else will likely cover separately in more detail, but we do get something I believe is worth mentioning here. The company just published its "Next 100 Days: XBOX Reset" blog post on Xbox Wire, where it was quite forthcoming about the state of the business, stating:
“We will end this fiscal year at about a 3% accountability margin, down year-over-year. Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform, and hardware subsidy, but our annual revenue has declined nearly half a billion during that time. Going forward, this cannot continue.”
Xbox is in a difficult spot, and it's one that, in many ways, it has created for itself. Years of brand dilution, inconsistent strategy, and decisions that often felt focused on the short term have left the company struggling to find its footing in a rapidly evolving industry.
That said, I genuinely hope those impacted by any potential layoffs next month are able to land on their feet. I also hope whatever Xbox ultimately outlines as part of its reset is enough to get the business back on track, both financially and in the eyes of fans.
Anyway, let me know your thoughts in the comments, and be sure to take part in our poll below:
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