Second wave of Xbox cuts reported to be happening this week, with "several" studios apparently facing consolidation
- Xbox is reportedly preparing to cut hundreds of jobs this week as the company plans studio consolidation, 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 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 is planning to consolidate several game studios and lay off hundreds more employees this week in a second major workforce reduction, reports The Information. Following 1,600 cuts in July, CEO Asha Sharma is executing plans to 'reset' the gaming business, which has already seen studios like Double Fine depart and major cutbacks hit ZeniMax Online and Id Software. Xbox Layoffs: Video Gaming Brand To Consolidate Game Studios and Cut Hundreds o…
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