The cuts will arrive in two waves, with 1,600 staff members departing immediately, followed by additional reductions over the coming months. Alongside the workforce contraction, the company is divesting from four gaming studios and preparing to offload a fifth. Sharma cited a severe hardware crisis and a business model that currently loses 64 cents for every dollar invested as the primary catalysts for the reset.
To address systemic bloat, Sharma plans to flatten the organizational structure, capping management at five layers and aiming for three where possible. The company will also slash vendor spending by 50 percent. As part of this pivot, veteran executive Helen Chiang has been appointed as the first Chief Operating Officer with end-to-end responsibility for content, hardware, and services. While Mojang and King will now report directly to the CEO to leverage their massive monthly active player bases, the broader strategy focuses on shifting toward open development tools for independent creators.
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