India, July 6 -- Microsoft's Xbox division is laying off 3,200 employees - around 20% of its workforce - as part of a restructuring effort. Of these, more than 1,600 roles are being eliminated immediately, with the remaining job cuts planned over the course of the next fiscal year.

In a note to employees shared on X, Xbox CEO Asha Sharma described the move as "the most significant restructure in Xbox history" and acknowledged the impact on employees. "I know this is painful. These changes will directly affect people who have poured their creativity into building XBOX. Today's decisions do not reflect their talent or dedication," Sharma wrote.

Explaining the reason behind the layoffs, Sharma said Xbox's business had struggled despite yea...