The Indicator from Planet Money · Wednesday, July 8, 2026
Microsoft is planning to lay off over 3,000 employees from its Xbox division, with a new leader reportedly stating the business is not in the right place. This follows earlier layoffs from the Xbox division and comes after significant investments, including the acquisition of Activision Blizzard. The head of the Xbox division indicated that the company has been losing approximately 64 cents for every dollar invested.
“And they announced on Monday that they are planning to lay off over 3,000 employees from its division.”
“The head of the Xbox division actually says in a typical year, they've been losing about 64 cents for every dollar that they've invested.”
“And it thought that all these investments would pay off later. But now, they basically said that we got it wrong. Uh, we miscalculated.”