Asha Sharma, CEO of Xbox, unveiled the largest restructuring in its history in what she described as a fundamental reset of how Xbox operates and invests, Fortune’s Sebastian Herrera reports.
It primarily includes layoffs that will affect roughly 3,200 people, or 20% of staff. The cuts are part of a broader workforce reduction at Microsoft announced Monday that is expected to impact about 2% of its 228,000 employees. Xbox is also spinning off four of its studios. “In order to grow, we made a bunch of bets … and as we did that, we inherently didn’t focus on the core business,” Sharma told Fortune. “The number one measure of your strategy is what you put your resources behind, and we simply spread ourselves too thin.”
The unit’s new plan centers on returning focus to its flagship Xbox console, which represents 80% of its business.
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