Xbox layoffs: Microsoft reportedly planning another round of job cuts
Microsoft’s gaming business could face another major shake-up, with hundreds of employees reportedly at risk as the company weighs further studio consolidation and changes across Xbox operations.
- Sep 22, 2026,
- Updated Sep 22, 2026 4:57 PM IST
Microsoft is reportedly preparing another round of job cuts at Xbox, with hundreds of employees potentially affected as the gaming division goes through another restructuring. According to The Verge, the company is expected to announce the layoffs today, September 22, citing sources familiar with its plans. The reported cuts are part of a larger restructuring that could also see Microsoft consolidate several of its game studios.
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The Information first reported the planned changes, adding another layer to Microsoft's ongoing gaming restructuring. For Xbox employees and gamers, however, the bigger question is what these changes could mean for the studios behind some of its major games.
Xbox reportedly preparing more job cuts
The reported layoffs would affect hundreds of employees, although the exact number has not been disclosed. The Verge says the cuts are part of Microsoft's broader plan to reduce around 3,200 Xbox roles by the end of June 2027. This makes the latest reported round part of a much larger workforce restructuring, not an isolated change.
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The Information has also reported that Microsoft plans to consolidate several game studios. However, the report does not identify which studios could be affected or explain exactly how the consolidation would work.
What happens to Xbox studios?
The studio changes could involve restructuring Microsoft's gaming operations, but details remain limited at this stage. Microsoft has not publicly confirmed the reported layoffs or named the teams that could be affected.
The latest development follows Microsoft's earlier restructuring of its gaming business, making the reported announcement another significant change for Xbox. For now, the number of employees affected, the studios involved and the final shape of the restructuring remain unclear.
Microsoft is expected to provide more details when it officially announces the changes.
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Microsoft is reportedly preparing another round of job cuts at Xbox, with hundreds of employees potentially affected as the gaming division goes through another restructuring. According to The Verge, the company is expected to announce the layoffs today, September 22, citing sources familiar with its plans. The reported cuts are part of a larger restructuring that could also see Microsoft consolidate several of its game studios.
Must Read: vivo V80 India launch date confirmed: ZEISS Portrait So Pro and OriginOS 7
The Information first reported the planned changes, adding another layer to Microsoft's ongoing gaming restructuring. For Xbox employees and gamers, however, the bigger question is what these changes could mean for the studios behind some of its major games.
Xbox reportedly preparing more job cuts
The reported layoffs would affect hundreds of employees, although the exact number has not been disclosed. The Verge says the cuts are part of Microsoft's broader plan to reduce around 3,200 Xbox roles by the end of June 2027. This makes the latest reported round part of a much larger workforce restructuring, not an isolated change.
Must Read: CMF by Nothing partners with Optiemus to build smartphones from India for global markets
The Information has also reported that Microsoft plans to consolidate several game studios. However, the report does not identify which studios could be affected or explain exactly how the consolidation would work.
What happens to Xbox studios?
The studio changes could involve restructuring Microsoft's gaming operations, but details remain limited at this stage. Microsoft has not publicly confirmed the reported layoffs or named the teams that could be affected.
The latest development follows Microsoft's earlier restructuring of its gaming business, making the reported announcement another significant change for Xbox. For now, the number of employees affected, the studios involved and the final shape of the restructuring remain unclear.
Microsoft is expected to provide more details when it officially announces the changes.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine