As rumored for the past two weeks, Xbox has begun the process of laying off more than 3,200 employees as part of a restructuring of Microsoft's video game business. Layoffs are inevitable after Xbox CEO Asha Sharma said Xbox operations are no longer sustainable due to declining revenue over the past five years.
Of the 3,200 employees laid off, 1,600 will lose their jobs today with the remaining 1,600 to be laid off in the coming months. The layoffs will involve employees at Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios.
Meanwhile, studios Compulsion Games, Double Fine, Ninja Theory, Undead Labs, and Arkane Lyon will be sold. So far, only Compulsion Games and Double Fine have been confirmed to operate as independent studios. Ninja Theory and Undead Labs are being sold to undisclosed buyers.
The ongoing Senua and State of Decay 3 projects will continue as planned. The only issue is Arkane Lyon, as EU law makes the process of removal and sale different.
In a note shared on social media by Asha Sharma, she confirmed that the Xbox reset process will be implemented immediately. Among the changes that will be made are reducing management layers, reducing vendor costs, and unifying management between owned studios.
