Xbox layoffs are reportedly planned shortly after Microsoft Corp closes its fiscal year on June 30, Bloomberg reported.
The job cuts form part of an overhaul led by new Xbox Chief Executive Officer Asha Sharma. Bloomberg did not report the expected number of affected employees.
Xbox also plans to cut marketing budgets and spending in other business areas. The changes come as Microsoft’s gaming division faces pressure from declining revenue.
In a blog post titled “Next 100 Days: XBOX Reset,” Sharma said Xbox expected to end the fiscal year at about a 3% accountability margin.
Read: Xbox Future: Is the ‘End of Xbox’ Claim Real?
She said Xbox had spent more than $20 billion on content, platform and hardware subsidies over five years, excluding Activision Blizzard King. Sharma said annual revenue had declined by nearly half a billion during that period.
The Bloomberg report comes after Xbox used its showcase to highlight Gears of War: E-Day and Clockwork Revolution as Xbox exclusives. Halo remake is still expected to launch on PlayStation later this year.
