Source: Xbox plans to lay off hundreds of employees this week in its second major staff cut in 2026, as it also plans to consolidate several of its game studios (Aaron Holmes/The Information)
ThinkingNews Desk · how this was written
Xbox announced a 268-role cut across Halo Studios and other first-party studios as part of a broader 3,200-role reduction planned for its 2027 fiscal year. The layoffs are part of an ongoing “reset” of its gaming business, with the company also consolidating several game studios. Xbox CEO Asha Sharma described the changes as the most significant restructure in the division’s history.
Written from all 3 reports below, not from any single one.
How it was reported
- TechMeme·Source: Xbox plans to lay off hundreds of employees this week in its second major staff cut in 2026, as it also plans to consolidate several of its game studios (Aaron Holmes/The Information)
Xbox will cut hundreds of staff this week and merge several of its game studios. Meta’s Muse app suffered a token-exposure flaw that prompted a hotfix, while Shopify announced it will let Muse complete purchases via Shop Pay. Sensor Tower reports Muse downloaded 902 K times in six days, and Xiaomi, OpenAI, and Alibaba are advancing open-weight and trillion-parameter AI models.
- The Verge·Microsoft is laying off 268 Xbox staffers and Ninja Theory may close
Microsoft announced the elimination of 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer as part of a broader 3,200-role reduction planned for its 2027 fiscal year. The cuts follow a July layoff that affected 1,600 Xbox employees and are described by Xbox CEO Asha Sharma as the most significant restructure in Xbox history.
- TechMeme·Microsoft lays off 268 Xbox employees across Halo Studios and other first-party studios, as part of an ongoing "reset" of its gaming business (Tom Warren/The Verge)
- Engadget·Xbox 'reset' continues with 268 job cuts and Activision making the next Halo game
- TechMeme·Xbox has become a shell of its former self, weighed down by job cuts and studio closures, as it focuses on franchises like Halo and reaching "a billion people" (Andrew Webster/The Verge)
Microsoft’s Xbox division is undergoing a major restructuring, cutting about 260 employees and closing several studios. The company is concentrating on flagship franchises such as Halo and aims to reach a “billion people” audience, signaling a shift away from broader brand initiatives. These moves reflect a strategic reset within Microsoft’s gaming business.