Xbox Reportedly to Undergo Major Layoffs Next Month

Xbox is planning a major wave of layoffs next month, according to a Bloomberg report that cited multiple sources. The cuts are expected after the end of Microsoft’s fiscal year on June 30 and will come alongside other spending reductions in marketing and other areas.

The number of employees affected is not yet known. In an email allegedly sent to employees today, CEO Asha Sharma said the division had spent $20 billion on content investments in the last five years, not including Activision Blizzard King (which cost Microsoft $69 billion).

However, its annual revenue declined "nearly half a billion" over the same period. Sharma wrote, “We expanded our studio system when we needed a pipeline of content to meet multiple strategies across subscription, streaming and devices. In the process, we have found ourselves over extended as we executed on changing strategies in a landscape of more readily available content.

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