Microsoft is reportedly preparing another round of Xbox layoffs that could affect several hundred employees, following the roughly 1,600 roles eliminated in July. The reported cuts would be part of a wider restructuring effort planned for the gaming division through 2026.
According to The Information, Microsoft’s broader plan calls for approximately 3,200 job reductions during 2026. The teams involved in the reported next round have not been identified, but the reorganization may include consolidation and changes to publishing structures across Microsoft’s gaming operations.
- Xbox Game Studios
- Bethesda
- Activision
- Blizzard
Asha Sharma, who took over leadership of Xbox in late February, has described the need for a reset of the division. The July measures were reported as the start of the largest restructuring in Xbox history, with several studios placed in a separation process that could lead to independence or a sale.
- Compulsion Games
- Ninja Theory
- Undead Labs
- Double Fine
- Arkane
Mojang and King have also begun reporting directly to Sharma. The two businesses have some of the largest active player bases in Microsoft’s portfolio, while Sharma has pointed to the division’s financial performance as a driver for the changes. She said Xbox was typically losing 64 cents for every dollar invested, with operating margins three to 10 times lower than those of comparable companies.
Microsoft is also seeking to simplify an internal structure that had grown to as many as 14 management layers. The latest reported layoffs remain unconfirmed, leaving the timing and the teams ultimately affected unclear.
