Microsoft Axes 268 Xbox Jobs Amid Ongoing Downsizing Efforts

Microsoft is cutting 268 jobs from its Xbox division in Washington state as part of a broader reduction in force affecting 500 to 600 workers, according to a company spokesperson.

The layoffs are part of an ongoing effort to streamline the business and bring it back on track after a previously announced downsizing of 3,200 employees in July. At that time, Xbox's new CEO Asha Sharma said the division had become 'unsustainably bloated' with margins 3-10 times lower than comparable platform and publishing businesses.

The latest layoffs include the reorganization of several gaming studios within the Xbox business, including World's Edge, Rare, and the next Halo title under Activision's banner. The move is seen as an attempt to cut costs and improve efficiency in a highly saturated industry where Microsoft has struggled to compete for gamers' attention and keep up with rising hardware costs.