Microsoft CEO Satya Nadella praised the “streamlining” underway at Xbox under CEO Asha Sharma, saying it was “great to see.” But that endorsement comes amid substantial job cuts: reports put the number of Xbox layoffs at about 1,868 so far, while Sharma’s announced target is roughly 3,200 role reductions across fiscal 2027.
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What Nadella said about the restructuring
Nadella said he feels “fantastic” about Xbox’s studios, intellectual property and ability to make games. He also said the business needs a sustainable model that can bring gaming to more people. His stated ambition is for Xbox to be both a strong game publisher and a platform provider across PC and Xbox.
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His remarks praise the overall streamlining effort; they do not establish that the restructuring is complete or that its results are assured.
How many Xbox employees have been laid off?
Reports cited in late September put the latest round of cuts at about 268 employees, in addition to roughly 1,600 roles cut earlier in the year. Added together, those figures amount to about 1,868 reported layoffs.
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That is a reported tally, not a final count. Sharma’s July announcement set a broader goal of reducing the team by approximately 3,200 roles during FY27, including about 1,600 role eliminations at the time of the announcement.
15 The 3,200 figure is the announced full-year target, not the number already laid off.
Xbox’s growth plan—and the challenge
Nadella says the goal is to reach more players while building a sustainable business that publishes games and supports gaming across PC and Xbox. He also said the plan is for Xbox gaming to return to growth next fiscal year.
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That goal faces a difficult backdrop. Reporting on the restructuring describes cancelled games and studios being separated or consolidated, changes that raise questions about how the smaller organization will deliver future releases and growth.
2 The available reports do not establish whether the restructuring will achieve its aims.
Nadella’s mention of both PC and Xbox indicates that his stated vision spans both platforms. It is not, by itself, a detailed hardware roadmap or proof of what Microsoft will do with future Xbox consoles.
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