Xbox to Slash Even More Jobs This Month, with Further Cuts in November and January
Xbox CEO Asha Sharma is planning three additional rounds of layoffs scheduled for October, November, and January, according to Fortune. These cuts are part of a broader restructuring that will eventually affect 3,200 employees across Microsoft’s 2027 fiscal year. So far, 1,868 jobs have been cut, following previous rounds in July (1,600 positions) and September (approximately 260 positions).
Beyond headcount reductions, Sharma’s restructuring has included significant organizational changes. Double Fine Productions and Compulsion Games have been granted independence from Xbox, spinning off as separate entities. However, Ninja Theory—the studio behind Senua’s Saga: Hellblade 2—faces potential closure as part of the overhaul.
The layoffs represent an unprecedented scale of workforce reduction for the Xbox division. Reports indicate the changes are part of a broader strategic “reset” aimed at improving the division’s operational efficiency and profitability. The timing of the layoffs across three distinct months suggests a phased approach to managing the organizational restructuring.
Additionally, speculation continues regarding Xbox’s broader future within Microsoft, with some industry observers discussing possibilities including a potential spinoff or sale of the division. The uncertainty surrounding these potential scenarios, combined with ongoing layoffs and studio closures, highlights significant turbulence within the gaming giant’s Xbox business unit.