Exclusive: Xbox’s CEO on 3,200 layoffs, four studios cut, and her blunt warning that ‘we spread ourselves too thin’ ^41.9%

Fortune - By Sebastian Herrera - 7/6/2026, 5:00 PM

Negativity Bias 27.5% - Post Hoc (False Cause) 16.5% - Confirmation Bias 11.4%

The largest restructuring in the history of Microsoft’s Xbox is accelerating, in what Asha Sharma, its chief executive, described as a fundamental reset of how Xbox operates and invests. Sharma unveiled sweeping changes at the gaming unit Monday, primarily layoffs that will affect roughly 3,200 people, or 20% of staff—1,600 employees... more