Microsoft announced to employees on Thursday that 18,000 jobs would be cut over the year and now it turns out the still fairly new Xbox Entertainment Studios will be included.
CEO Satya Nadella revealed that the tech giant is looking to streamline and one of the main victims is set to be Nokia, which will lose about 12,500 jobs. In total, 14 percent of Microsoft's workforce will be let go.
Nadella said that more will be explained during a regularly planned Q&A and the July 22 public earnings call.
Well, another area set for restructuring is the Santa Monica-based XES, which barely got off the ground before being cut down after continued struggles. According to Recode, about 200 employees will be laid off.
Though the studio will be shuttering, chief Nancy Tellem and other executives like Jordan Levin, will remain on board to watch over continued production on several previously announced series, Microsoft Studios head Phil Spencer said in a statement.
Work will continue on documentary series Signal to Noise and. Halo: Nightfall, along with more NFL on Xbox.
"Xbox will continue to support and deliver interactive sports content like 'NFL on Xbox' and we will continue to enhance our entertainment offering on console by innovating the TV experience through the monthly console updates," Spencer wrote, effectively ending earlier ambitious plans to provide plenty of TV content to Xbox console owners.