Goa, July 6 -- Microsoft-owned Xbox has announced plans to lay off 3,200 employees, around 20 per cent of its workforce, as part of a major restructuring aimed at improving profitability and sharpening its focus on artificial intelligence and long-term growth.

In a message shared with employees, Xbox CEO Asha Sharma said 1,600 staff members would be laid off immediately, while the remaining job cuts would take place during the 2026-27 financial year. She stressed that the decision reflected the company's financial challenges rather than the performance of its employees.

"Our business today is not healthy. We are operating at margins that are 3-10 times lower than comparable platform and publishing businesses," Sharma wrote, adding that ...