Microsoft’s Xbox division is planning major layoffs next month, according to a report by Bloomberg News. The job cuts will mark the first major restructuring under new CEO Asha Sharma, who took charge of the gaming unit in February.

Xbox has faced mounting challenges in recent years, including declining console sales and a shortage of blockbuster titles. Sharma stated that Xbox’s accountability margin had fallen to 3% and that the company had spent over $20 billion on content, platforms, and hardware subsidies over the past five years, despite annual revenue declining by nearly half a billion during that period.

The exact scale of the layoffs is not yet clear, but it is expected to be announced shortly after the close of Microsoft’s fiscal year on June 30. In April, Microsoft lowered prices for its Game Pass service and ended day-one releases of future “Call of Duty” titles on the platform, marking one of the first major strategy changes under the new gaming chief.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.