Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

The leader of the Joint Awami Action Committee (JAAC), Sardar Aman Khan, has appealed to India for humanitarian assistance amid the ongoing unrest in Pakistan-occupied Kashmir (PoK), claiming that the region is facing severe shortages of essential supplies following a crackdown by Pakistani authorities.

According to Khan, residents are struggling to access food and medicines as security operations against protesters continue. He also urged India to consider opening the Line of Control (LoC) to allow humanitarian assistance and provide civilians with the option of crossing into India if the situation worsens.

JAAC chief calls for humanitarian assistance

Speaking at a public gathering, Khan claimed that an economic blockade imposed after the crackdown had created serious hardships for people in the region.

In a video that has circulated widely on social media, he is heard saying that PoK residents need India’s assistance due to shortages of essential commodities.

He also appealed for the opening of crossing points along the LoC, particularly in the Poonch and Doda sectors, alleging that the ongoing restrictions had further intensified the humanitarian situation.

During the rally at Rawalakot’s Eidgah Ground, Khan asked the crowd whether they should move towards the Line of Control. The gathering repeatedly responded in support of the proposal.

He further warned that if public demands continued to be met with force, people could consider other options.

It is important to note that the authenticity of the viral video, reportedly from Khan’s June 30 rally, has not been independently verified.

Protests continue across PoK

The appeal comes as demonstrations continue across Pakistan-occupied Kashmir, where protests against the Pakistani administration have been ongoing since last month.

During a recent rally at Eidgah Ground, protesters raised slogans including “PoK is not part of Pakistan” and “We want freedom,” indicating that the movement has expanded beyond demands for reforms to include calls for independence from Pakistan’s political control over the region.

Crackdown follows ban on JAAC

The unrest intensified after Pakistani authorities banned the Joint Awami Action Committee on June 5, designating the grassroots organisation as a terrorist group.

According to a recent report by the International Centre for Peace Studies, Pakistan has historically exercised significant political control over Pakistan-occupied Kashmir and Pakistan-occupied Gilgit-Baltistan through mainstream political parties aligned with Islamabad.

The report also noted that the ruling party in Islamabad has consistently won elections in both regions, suggesting a long-standing pattern of political influence.

Meanwhile, several analysts have argued that the ongoing crisis reflects growing dissatisfaction among local residents with the regional administration, which they describe as lacking independent authority. They also contend that the ban on the JAAC and the use of force against protesters are part of broader efforts to suppress the expanding protest movement.

Crowds attending a funeral ceremony in Iran raised chants of “Death to Trump” as the country’s Supreme Leader, Ayatollah Ali Khamenei, made a public appearance during the event.

The slogans were heard as thousands gathered to pay tribute to those killed during the recent conflict involving Iran and Israel. The ceremony also marked one of Ayatollah Khamenei’s notable public appearances after the military escalation that had heightened tensions across the region.

Anti-US slogans raised during ceremony

Videos circulating from the funeral ceremony showed mourners chanting “Death to America” and “Death to Trump” while Ayatollah Khamenei attended the event. Such slogans have long been associated with state-backed public gatherings in Iran and were repeated during the ceremony attended by senior Iranian officials and large crowds.

The funeral was held to honour military commanders, nuclear scientists and other individuals who Iran says were killed during the recent conflict. The gathering drew thousands of people to the capital, where processions and official tributes were organised.

Public appearance after recent conflict

Ayatollah Khamenei’s appearance came after weeks of heightened tensions in the Middle East following Israeli strikes on Iranian targets and subsequent military exchanges between the two countries. The conflict also saw the United States carry out strikes on Iranian nuclear facilities, further escalating regional tensions.

The funeral ceremony was among the Supreme Leader’s most significant public appearances since the conflict, with state media extensively covering the event.

Regional tensions remain high

Relations between Iran, Israel and the United States remain strained despite the ceasefire announced following the recent hostilities. Officials from the three countries continue to exchange strong statements over the military operations and the future of Iran’s nuclear programme.

The funeral ceremony reflected the continuing anti-US and anti-Israel sentiment expressed by sections of the Iranian establishment and supporters attending the event.