[STEAM] The incredible shrinking Xbox: Five studios, 3,200 employees let go

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Last month, Xbox executives

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about

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's struggling gaming division that they said would require a difficult "Xbox reset." This morning,

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announcing plans for 3,200 layoffs and the divestment of five smaller studios that the company has spent years acquiring and shepherding.

Half of those 3,200 layoffs are effective today,

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wrote, while the other half will come by the end of

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's 2027 fiscal year (which runs through June 30, 2027).

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cites "a person familiar with the matter" in reporting that these cuts amount to roughly 20 percent of the Xbox division.

When combined with 1,600 newly announced layoffs across the rest of

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, the company as a whole is letting go of just over 2 percent of its workforce. But

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that

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's total headcount has remained relatively stable thanks to other hiring.

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