Microsoft to Cut Workforce, Restructure Xbox Division
Microsoft announced on Monday, as part of a restructuring plan, it will cut 4,800 jobs, which represents just over 2% of its workforce. The majority of these layoffs, approximately 3,200 positions, will affect the Xbox division, as CEO Asha Sharma highlighted significant financial losses in recent years, averaging 64 cents lost for every dollar invested in game studios.
Despite generating $125 billion in profit on $318 billion in revenue over the past 12 months, the Xbox segment has seen revenue declines of 7% in early 2023 and 6% in the previous quarter. With around 200 million monthly active Xbox users, Microsoft aims to enhance this division to improve overall growth and competitiveness.
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