🔥 Trending Xbox Announces Major Layoffs and Studio Closures

Xbox announced a significant restructuring on July 6, 2026, which includes approximately 3,200 job cuts and the divestment or closure of multiple studios ¹²³⁵. This move is being described as the most substantial restructuring in Xbox's history by CEO Asha Sharma ²⁸.

The layoffs affect roughly 20% of the Xbox division's workforce ⁸. While some sources initially reported four studios being spun off ¹²⁷, others, including Microsoft's own announcements, indicate that five Xbox Game Studios will be divested or closed ⁴⁵⁶. This event marks a major shift for the gaming giant, following previous layoffs in January 2024 that saw 1,900 employees cut after the Activision Blizzard merger ¹⁰.