Xbox CEO: Layoffs and Restructuring Are Driving Growth

Asha Sharma states that recent aggressive changes have reversed a decline and are positioning the company for future expansion.

Oct 6, 2026
Game News
Xbox CEO: Layoffs and Restructuring Are Driving Growth

Xbox CEO Asha Sharma has stated that the company's recent restructuring, which included significant layoffs, has begun to yield positive results, reversing a period of decline and initiating a return to growth. Sharma reportedly shared this assessment with staff during a recent company town hall.

According to reporting from Windows Central, Sharma informed her team that the platform has moved beyond an "all-time low" and is now growing at a rate two to three times greater than before, with expectations for continued expansion. She attributed this turnaround to the "right decisions" made to reinvest in the business. The CEO also highlighted positive momentum for upcoming titles such as Minecraft Dungeons 2, Gears of War: E-Day, and World of Warcraft: Forever, alongside a claimed 30 percent increase in "brand sentiment" over the past year.

Sharma outlined several strategic goals aimed at strengthening Xbox's console presence. These initiatives include advancing Play Anywhere and Disc-to-Digital programs, improving the ease of development for the platform, and offering greater flexibility in Game Pass subscriptions. The company also intends to continue curated cross-collaborations, with the recent addition of The Witcher 3 to Battle.net serving as an example.

Looking ahead to the next generation of hardware, codenamed Project Helix, Sharma indicated a shift toward a "family of devices" rather than a single console. This approach will prioritize a primary console offering while also catering to players on the go. Microsoft plans to leverage its manufacturing capabilities for some components while partnering with others for different elements. Sharma expressed optimism about the evolving operating system designed to unify the Xbox experience across these diverse devices.

Despite these positive remarks, the internal impact of the ongoing "reset" remains significant. Xbox Chief Content Officer Matt Booty previously stated that the company is only about 75 percent through this process, with further staff reductions anticipated. Furthermore, some of the division's long-term strategic bets, such as the reboot of Halo under Activision, are expected to take many years to materialize.

Sources