Xbox is said to be preparing for additional layoffs amidst calls from its CEO for an "Xbox reset"

Xbox is rumored to be planning substantial job reductions as it reassesses its financial focus for upcoming years. Employees were informed of the need to enhance self-reliance in engineering by reducing dependence on external vendors.

According to Bloomberg, the potential downsizing under the leadership of new CEO Asha Sharma aims at curbing falling profits. Although these changes have not been officially confirmed, insiders anticipate the cutbacks might be declared as Microsoft approaches the conclusion of its fiscal year this month.

The scale of the layoffs is unclear, but it's believed that Xbox intends to substantially cut marketing budgets and possibly other areas.

The company gave no official statement.

Asha Sharma, within her first 100 days in her role, discussed the necessity of balancing optimism with realism to revamp the organization. She outlined five focal points: attracting attention, addressing the 3% accountability margin decline, resolving hardware shortages, managing strategic expansion while ensuring content development, and improving platform architecture.

Sharma and Matt Booty emphasized the complexity of existing systems, calling for greater internal capabilities to expedite value delivery to players. The objective is to enhance the infrastructure while considering mergers and acquisitions to excel in hardware, PC, mobile, and streaming domains.

The memo to staff highlighted the need to embrace hard truths rather than avoid them, aiming for transformative progress in hardware, content, and services.

Both Sharma and Booty underscored the necessity of resetting to fortify the Xbox division.

In subsequent discussions, Sharma advocated cost-efficient hardware production, following a significant decline in hardware revenues. Xbox plans to boost its platform with unique games like Gears of War: E-Day and Clockwork Revolution while adjusting the pricing of its Game Pass subscription, which has shown growth in user numbers and retention following price reductions.