Microsoft Is Shutting Down Xbox Entertainment Studios : Up To 18,000 Employees To Lose Their Jobs In The Next 12 Months

By John Kevin Muu Jul 18, 2014 12:13 PM EDT

Microsoft Is Shutting Down Xbox Entertainment Studios : Up To 18,000 Employees To Lose Their Jobs In The Next 12 Months

Microsoft is expected to shut down the Xbox Entertainment Studio that will see the end of an ambitious fray into original video programming. In a statement issued to GameSpot, Microsoft outlined its plans to streamline a handful of portfolio and engineering development efforts across Xbox. With the closure of the Xbox Entertainment studio it is left to be seen if Xbox marketing employees will be laid off. This is according to a reporter who suggested that the marketing employees would be let go.

The Santa Monica studio will be shuttered as Microsoft focuses on strengthening its core videogame business. The cuts are part of Microsoft's company-wide restructuring announced on Thursday morning which will see the elimination of up to 18,00 jobs in the next 12 months. A week ago chief executive Staya Nadella guaranteed to streamline the business. The company revealed that the Android experience the Nokia X would be its next victim.

Some of its key talents will remain in the company however Nancy Tellem, the former head of CBS Television; plus Jordan Levin, former CEO of the WB Network are not as lucky. They are among those who will be laid off from the company.

Microsoft did give an explanation in which they said that even though the Xbox remained a crucial part of the Microsoft ecosystem its content business was not. Microsoft chief executive Satya said that Xbox was important to Microsoft. A spokeswoman from Microsoft said that "Games are the single biggest digital life category in a mobile-first world. Xbox is a strong consumer brand with an incredible fan base. As part of the planned reduction to our overall workforce announced today and in light of the Xbox vision to focus more on games and gamers, we plan to streamline a handful of portfolio and engineering development efforts across Xbox."

She also said that "One such plan is that we will expect to close Xbox Entertainment Studios in the coming months."

The company did say that some of the Xbox Entertainment studio team will stay on through to help continue the original programming that is already in progress. The programs include "Signal to Noise" documentary focusing on Atari, as well as the anticipated series 'Halo: Nightfall,' and the 'Halo" television Series with 343 Industries.

As for now it is back to the basics as Microsoft originally positioned the Xbox as an all in one entertainment devices the E3 presentation focused exclusively on games. All in all the video is no longer part of Microsoft business.