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Nadella Backs Xbox Restructuring Amid Layoffs and Studio Consolidations

Guavy AI Editorial Team
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MSFT
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Microsoft CEO Satya Nadella has acknowledged that Xbox remains an unprofitable unit for the company, operating at a net loss rather than generating sustainable returns.

Nadella commended current chief Asha Sharma's leadership in implementing restructuring measures aimed at securing Xbox's long-term commercial viability.

The changes include layoffs affecting 3,200 employees and studio consolidations, resulting from a major reorganization of Xbox Game Studios.

Nadella expressed full satisfaction with the outcomes, praising Sharma's early progress in redirecting the brand toward a better path.

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