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Gamerant
Xbox Addresses Accusations of Outsourcing Thousands of Positions
After announcing major layoffs affecting 3,200 positions within Xbox as part of a restructuring initiative, Microsoft has dismissed accusations of outsourcing U.S. jobs. Xbox CEO Asha Sharma emphasized the layoffs aim to improve the business's health. Microsoft stated that most affected positions are outside the U.S. and that those alleging job replacements misinterpret application figures for H-1B visas. The company maintains that layoffs reflect a shift in priorities rather than a simple cost-cutting measure.
MonitorConfidence: HighImmediate horizonTalent displacement risk: High
Published 11 Jul 2026, 20:00 UTC3 min read
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Summary
TL;DR
- 1,600 employees initially laid off, with another 1,600 expected cuts by June 2027.
- Accusations of outsourcing linked to racist attacks against Xbox CEO Asha Sharma.
- Microsoft emphasizes that most affected roles are outside the U.S.
- Statements from Frank X. Shaw clarify the allegations of replacing U.S. workers are unfounded.
- Layoffs viewed as necessary for restructuring, not immediate cost-cutting.
Interesting facts
- The layoffs represent the largest cut in gaming industry history.
- Accusations against Sharma included personal attacks related to her heritage.
- Sharma is a U.S. native, contradicting claims made against her.