A theoretical study of the subshell photoionization of the Xe atom endohedrally confined in C 60 is presented. Powerful hybridization of the Xe 5s state with the bottom edge of C 60 π band is found that induces strong structures in the 5s ionization, causing the cross section to differ significantly from earlier results that omit this hybridization. The hybridization also affects the angular distribution asymmetry parameter of Xe 5p ionization near the Cooper minimum. The 5p cross section, on the other hand, is greatly enhanced by borrowing considerable oscillator strength from the C 60 giant plasmon resonance via the atom-fullerene dynamical interchannel coupling. Beyond the C 60 plasmon energy range the atomic subshell cross sections display confinement-induced oscillations in which, over the large 4d shape resonance region, the dominant 4d oscillations induce their "clones" in all degenerate weaker channels known as correlation confinement resonances.

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