Reported by 3 outlets

Microsoft prepares additional Xbox job cuts through early 2027 under Asha Sharma's division reset

Eurogamer

The story so far

AI summary of the reporting below · Updated · How we work

Microsoft's gaming division is planning three additional rounds of layoffs scheduled for October, November, and January 2027, according to people familiar with the plans cited by Fortune. The moves follow an organizational reset initiated by Xbox chief executive Asha Sharma, which began with over 1,600 job cuts in July out of an intended 3,200 staff reductions across Microsoft's 2027 fiscal year. Another round eliminated 268 positions in September alongside restructuring that shifted Obsidian under Bethesda and moved Rare and World's Edge under Activision. [1][2][3]

While Microsoft has not publicly confirmed the upcoming dates or specified which teams will be targeted, staff at Gears of War: E-Day developer The Coalition are anxious about potential reductions following softer-than-expected game sales. Developers expressed concern that impending terminations might be scheduled to preempt anticipated bonus payouts. Previous restructuring has also allowed Double Fine and Compulsion Games to spin off independently, whereas Ninja Theory faces potential closure. [1][2][3]

The workforce reductions are intended to curb expenses and restore Xbox to profitability as management outlines the brand's future hardware plans. Internally, Microsoft projects that its next-generation Helix consoles will carry retail prices between $1,200 and $1,800. [1]

Read the original reporting

3 outlets
Illustration of Xbox logo.The Verge
[3] The Verge

Xbox CEO is reportedly planning three more rounds of layoffs

Xbox CEO Asha Sharma is planning new rounds of layoffs for sometime this month, November, and January, according to Fortune. In July, as part of an organizational "reset," Sharma announced planned layoffs affecting 3,200 staffers over the course of Microsoft's 2027 fiscal year, including 1,600 cuts at that time, and in September, Microsoft laid off…

via The Verge
Read at The Verge