Xbox CEO outlines ambitious growth plan after layoffs

Xbox CEO Asha Sharma has shared a new memo detailing priorities to drive growth following recent staff reductions at Microsoft.

In a memo sent to staff on July 30, Sharma set out four main priorities for the Xbox division. These include strengthening the platform with a focus on consoles, growing games into global franchises, making Minecraft the world’s creator platform, and extending fan-favorite worlds.

The plan aims for Xbox to reach halfway to a long-term goal of one billion daily users by 2030. The division currently has 100 million daily users. Sharma described Xbox as one of the largest stadiums in the world and noted that the console remains a flagship experience while expanding to PC, cloud, and other platforms.

Microsoft recently reported double-digit revenue declines in hardware and games and services. Sharma also highlighted plans to monetize franchises like Fallout across film, television, and other areas, along with further investment in titles such as Candy Crush and Minecraft.

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Illustration of Microsoft Xbox layoffs showing office workers packing boxes
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Microsoft cuts 4,800 jobs amid Xbox restructuring

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Microsoft announced major layoffs across its gaming division and other units on July 6, 2026. The cuts total 4,800 positions, or 2.1 percent of the global workforce. Xbox is divesting several studios as part of the reset.

Xbox CEO Asha Sharma said a healthy console business is necessary but not sufficient for success. She spoke in an interview amid ongoing layoffs at Microsoft Gaming.

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Xbox's new chief executive Asha Sharma plans to speed up development of major franchises such as Halo and Fallout. Resources will be shifted from lower-performing areas while overall budgets stay flat. Microsoft leaders have approved the changes for the coming fiscal year.

Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

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Matthew Ball, Xbox's new chief strategy officer, has voiced strong support for traditional console gaming in his first public comments since joining the leadership team. He described the platform as important, durable, and still growing.

Microsoft is set to begin layoffs across its Xbox division on July 6. The plans reportedly include closing Arkane Studios and canceling the Blade game.

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Users of the Xbox Player Voice portal are calling for an end to studio closures and layoffs following recent cuts at Microsoft. The top trending thread has drawn thousands of upvotes and comments expressing frustration with leadership.

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