In yet another wave of layoffs sweeping the tech industry, Microsoft has announced plans to cut around 4,800 jobs, or roughly 2.1% of its global workforce. The move has placed Xbox CEO Asha Sharma at the centre of attention after she informed employees that the gaming division was undergoing what she described as the "most significant restructure in Xbox history."
Asha Sharma is an Indian-origin technology executive and the CEO of Xbox, Microsoft's gaming division. Born in India and raised in the United States, she has built her career across leading technology companies, specialising in product strategy, digital platforms and consumer technology.
The 36-year-old became Executive Vice President and CEO of Microsoft Gaming in February 2026, succeeding Phil Spencer. Before taking charge of Xbox, Sharma held leadership roles at Microsoft, Meta, Porch Group and Instacart, before returning to Microsoft in 2024 as President of CoreAI Product.
Asha Sharma drew widespread attention during Xbox FanFest 2026 in June in Los Angeles after announcing that every attendee would receive a free Xbox Series X25 console. The surprise giveaway went viral and earned praise from gamers, helping introduce Sharma to wider audience.
Sharma is now at the centre of attention following Microsoft's latest layoffs. In an internal memo, she announced what she called the "most significant restructure in Xbox history," with around 3,200 job cuts planned across FY27, including 1,600 immediate layoffs. She said the changes were needed to simplify operations and adapt to changing market conditions, while stressing that the decisions did not reflect employees' talent or dedication.
Despite the layoffs, Sharma said the restructuring is focused on long-term growth rather than downsizing. "These changes are about a bigger future for XBOX, not a smaller one," she told employees. She said Xbox will adopt a leaner operating model, simplify its structure and make more disciplined investments, while continuing to invest in gaming content, technology and player experiences. Sharma also said the company aims to return to growth in 2027.
Sharma's contrasting headlines this year have made her one of the gaming industry's most closely watched executives. In June, she won praise after surprising fans at Xbox FanFest Los Angeles with free Xbox Series X25 consoles. Now, she is leading one of the biggest restructurings in Xbox's history, putting her leadership and Microsoft's gaming strategy under intense public scrutiny.