XBOX reportedly planning major layoffs as part of "business reset"

Xbox CEO Asha Sharma is said to be preparing a “business reset” that will see cuts to the company’s marketing budget and workforce in an effort to reduce costs.

The details:

• A new Bloomberg report says major job cuts are planned to take place shortly after Microsoft’s fiscal year ends on June 30, with around 1,000 employees expected to be affected by the layoffs. In an internal memo titled “Next 100 Days: Xbox Reset,” Sharma told staff the business is “not in a healthy spot,” revealing that, despite spending more than $20 billion in expenses over the last five years, revenue has declined by over $500 million.
• The CEO explained that the company had "overextended" by expanding the number of teams and studios when Xbox needed a “pipeline of content to meet multiple strategies across subscription, streaming, and devices.” “We are the fortunate stewards of industry-defining franchises that have enormous potential and player demand, but we have not adequately funded them to compete and win,” the memo reads. “At the same time, as we saw this past weekend at Showcase, a reliable pipeline of first- and third-party exclusives and new IP are critical to our success. We need to reassess the balance between these and our investment priorities for the next 5 years.”
• This marks the fourth year of layoffs in a row for Xbox, with thousands of jobs lost, several major studio closures, and various project cancellations, including the likes of Rare’s Everwild, the Perfect Dark reboot from now-defunct studio The Initiative, and much more.