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Second Wave of Xbox Cuts Reported to Be Happening This Week, with "Several" Studios Apparently Facing Consolidation
The reported cuts would be the second wave this year as Xbox seeks to streamline studios and lift margins after July layoffs of 1,600 workers.
- Xbox is reportedly preparing to cut hundreds of jobs this week as the company consolidates studios, according to The Information, which cited an unnamed source briefed on Microsoft's plans.
- This potential reduction follows a major restructuring in July that resulted in 1,600 job cuts, part of CEO Asha Sharma's plan for approximately 3,200 total reductions throughout FY27.
- Sharma noted the business was "not healthy," citing margins significantly lower than rival publishing businesses, and emphasized the need for a "reset" targeting the content portfolio, platform, and team operations.
- Xbox plans to focus on major franchises like Fallout and Elder Scrolls; previous cuts impacted Bethesda, Zenimax Online, and Doom and Quake developers, while Ninja Theory and Undead Labs were sold to unnamed buyers.
- While over 200 million new players joined Xbox in FY26, the company's business failed to grow alongside its audience, and Sharma expects the gaming division to return to growth by the end of FY27.
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Xbox reportedly set to lay off hundreds more staff and "consolidate" several game studios in second round of major cuts this year
After laying off around 1600 people and parting ways with a number of studios back in July, Microsoft-owned Xbox are reportedly set for another round of job cuts and internal upheaval this week.
According to reports, Xbox is preparing for the dismissal of hundreds of other employees this week. Furthermore, the company plans to merge several of its development studios. read more
According to credible rumors, Microsoft will announce further mass layoffs in the Xbox division this week. The information "Will Xbox be hit by further layoffs? Blizzard and Halo may be in Microsoft's crosshairs" was published by GRYOnline.pl on September 22, 2026.
Coverage Details
Total News Sources29
Leaning Left1Leaning Right0Center2Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
Factuality
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