A major restructuring is underway at Xbox, with the company reportedly facing significant job cuts and studio divestitures. The number of layoffs is unclear, with estimates ranging from 3,200 to 4,800, and the number of studios to be divested is also uncertain, with reports of either four or five studios being affected. The overhaul appears to be part of a larger strategic shift, with some outlets suggesting that a failed streaming strategy may be a factor.