Microsoft has announced that thousands of Xbox employees have lost their jobs today, as part of wider cuts across Microsoft in a bid to make the business "healthy". In a memo attributed to Xbox CEO Asha Sharma, some 3200 people will be laid off "throughout FY2027" (which runs until March 31st, 2028), with 1600 of those losses happening immediately. As part of the changes, four internal Xbox studios will leave the brand.