Xbox’s Second Wave Of Planned Layoffs Is Reportedly Starting As Studios Face Major Restructuring
Microsoft is preparing for the second wave of layoffs within its Xbox division, marking a significant escalation in the company’s ongoing restructuring efforts. According to The Information, the second batch of 1,600 job cuts is expected to commence soon, following the initial wave of 1,600 layoffs that took place in July. These cuts are part of Xbox boss Asha Sharma’s broader restructuring plan to eliminate 3,200 positions total from the gaming division.
The restructuring extends beyond simple cost-cutting measures. Microsoft is also planning to consolidate several of its studios as part of the reorganization, suggesting a more fundamental shift in how the company structures its gaming operations. This consolidation indicates the company may be streamlining its studio portfolio and potentially redirecting resources toward fewer, larger projects.
The layoffs represent a significant contraction in Microsoft’s gaming workforce and underscore challenges the gaming industry continues to face. The scope of these cuts—totaling 3,200 roles across the division—demonstrates the scale of Microsoft’s restructuring ambitions and may signal broader strategic changes within Xbox’s development pipeline.