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[BUSINESS] · United States · 100 sources

Part of situation: Xbox layoffs, Game Pass backlash intensify (114 clusters)

Microsoft Xbox to cut 3,200 jobs and divest four studios in sweeping restructure

Microsoft Xbox job cuts studio divestiture management restructure Game Pass

Microsoft announced a major overhaul of its Xbox division. An internal memo from Xbox CEO Asha Sharma said 1,600 positions are being eliminated immediately, with a further 1,600 to be cut by the end of the 2027 fiscal year, bringing total Xbox headcount reductions to about 3,200 – roughly 20 % of the unit. The cuts are part of a broader Microsoft plan to cut about 4,800 jobs worldwide (≈2.1 % of its global workforce) as the company reshapes its gaming business after the costly Activision Blizzard acquisition.

The restructuring aims to lower operating margins that Sharma described as “three to ten times lower than comparable platform and publishing businesses.” Xbox will flatten its management hierarchy, reducing up to 14 layers to a maximum of five, and appoint Helen Chiang as the division’s first chief operating officer.

Four first‑party studios are being removed from Xbox’s portfolio: Compulsion Games and Double Fine Productions will become independent with full rights to their IP; Ninja Theory and Undead Labs will move to new owners with funding to finish pending titles. Arkane Lyon in France has entered a consultation process to explore strategic options. Mojang (Minecraft) and King (Candy Crush) will now report directly to Sharma.

The move follows disappointing growth in Game Pass subscriptions and hardware sales, with the service far below its target of 77 million subscribers. Microsoft says no announced Xbox games are being cancelled, but the cuts raise uncertainty for studios such as id Software, which reportedly lost about half its staff. The company stresses the changes are needed to return Xbox to sustainable profitability and to pursue longer‑term goals, including reaching one billion daily active players.

Sources

Xbox Laying Off 3,200 and Dropping 4 Studios in 'Reset' of Microsoft's Games Strategy [www.cnet.com]
20 days ago
Microsoft cuts 3,200 Xbox jobs, spins off four studios in biggest gaming restructure [www.news9live.com]
20 days ago
Doom Developer id Software Reportedly Loses Roughly Half Its Staff To Layoffs [gameinformer.com]
19 days ago
微軟 Xbox 大幅裁員 3200 人 重塑遊戲業務布局 AI 新時代 [tw.stock.yahoo.com]
20 days ago
Xbox Parts Ways With Four Studios, Over 3,000 Layoffs Announced [gameinformer.com]
20 days ago
Xbox - Even More Layoffs and Restructuring at Microsoft [gaminglatest.com]
20 days ago
Microsoft binlerce çalışanını işten çıkarıyor [www.cnbce.com]
20 days ago
Microsoft’s Xbox to cut 3,200 jobs, divest five studios in major overhaul [www.businesstimes.com.sg]
20 days ago
Microsoft entdeckt die ultimative KI-Effizienz: Menschen kosten nur Geld [www.diebewertung.de]
20 days ago
Xbox Game Pass : comment un pari à 77 millions d’abonnés s’est transformé en crise ouverte [android-mt.ouest-france.fr]
19 days ago
Do the big Xbox layoffs mean that they're done with mobile? [www.pocketgamer.com]
19 days ago
Compulsion Games ist raus: South of Midnight Studio verlässt Xbox – mit allen Rechten - PixelCritics [pixelcritics.com]
20 days ago
Blizzard Employees Await News on Microsoft Layoffs | BlizzPro [blizzpro.com]
19 days ago
Microsoft to Cut Thousands of Jobs, Xbox to Be Hit Hard [en.tempo.co]
20 days ago
Microsoft vil nedlægge 4. 800 stillinger: Her rammer fyringerne [www.computerworld.dk]
20 days ago
Microsoft Cuts 4,800 Jobs as Xbox Begins Major Reset [digitalmarketreports.com]
20 days ago
Microsoft anunță concedieri noi de mii de angajați la nivel global - Economica. net [www.economica.net]
20 days ago
Xbox: 4. 800 licenziamenti, quattro studi ceduti e la più grande ristrutturazione della sua storia - GameSource [www.gamesource.it]
20 days ago
Xbox - Xbox plans 3,200 job cuts, and will drop five acclaimed studios [gaminglatest.com]
19 days ago
Microsoft zwalnia blisko 5 tys. pracowników, obiecując adaptację do zmian wywołanych przez AI. [gazeta-lokalna.pl]
20 days ago
Microsoft, binlerce çalışanı işten çıkarıyor [www.gazetezebra.com.tr]
20 days ago
Microsoft cắt 4. 800 việc làm, Xbox chịu nặng nhất trong đợt "reset" gaming này đó anh em [tinhte.vn]
20 days ago
Microsoft bo odpustil 4800 zaposlenih; igričarski oddelek Xbox najbolj na udaru [www.delo.si]
20 days ago
Microsoft anuncia un despido masivo que golpea a Xbox: la división de videojuegos ya no es 'saludable' [www.merca2.es]
20 days ago
Microsoft eliminará 4. 800 puestos por reestructuración [eluniverso.com]
20 days ago
Xbox entame son grand reset : 3200 personnes licenciées, 5 studios remerciés [new-game-plus.fr]
20 days ago
Microsoft PHK 4. 800 Karyawan di Seluruh Dunia, Tegaskan Bukan karena AI Gantikan Pekerja |Republika Online [news.republika.co.id]
20 days ago
Xbox in der Krise: Tausende müssen gehen [www.merkur.de]
20 days ago
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19 days ago
KI-Anwendungen boomen: Deutscher Mittelstand zieht nach [www.vol.at]
19 days ago
Microsoft traça plano ambicioso para Xbox visando 1 bilhão de jogadores diários - Mercado ETC [mercado.etc.br]
20 days ago
Xbox: ristrutturazione storica, 3. 200 licenziamenti e quattro studi ceduti [www.mmo.it]
20 days ago
Obsidian Entertainment Reportedly Lays Off 25% Of Staff On July 6, 2026 [nosmokesport.com]
20 days ago
Obsidian va-t-il être le prochain sacrifié de la purge Xbox ? [new-game-plus.fr]
22 days ago
XBOX despide a 1600 empleados: qué estudios se independizan [pressover.news]
20 days ago
Microsoft Slashes 4,800 Jobs as Xbox Faces Major Gaming Division Reset - Pulptastic [pulptastic.com]
20 days ago
Xbox Layoffs Signal Major Reset for Microsoft’s Gaming Business » ¡Que Onda Magazine! [queondamagazine.com]
19 days ago
Microsoft anuncia el despido de cerca de 4. 800 empleados en medio de su apuesta por la inteligencia artificial - RÍO NOTICIAS [rionoticias.co]
20 days ago
Microsoft’s Xbox to cut 3,200 jobs, divest five studios in major overhaul [www.businesstimes.com.sg]
20 days ago
Xbox-Neuausrichtung: CEO Asha Sharma nennt Zeitplan für den Umbau - gigamaus. de [www.gigamaus.de]
20 days ago
MICROSOFT | Xbox colapsa entre despidos y reestructuraciones de estudios con el futuro de Minecraft en vilo [www.eldia.es]
20 days ago
微軟大力整頓Xbox與商業部門　預計大裁4800人 [bccnews.com.tw]
20 days ago
Xbox-Umbau: Microsoft streicht tausende Jobs – und 14 Management-Ebenen | t3n [t3n.de]
20 days ago
Despidos en Microsoft: 4. 800 empleados afectados y cómo te afecta [www.que.es]
20 days ago
Brutális leépítések az Xboxnál [ipon.hu]
19 days ago
Microsoft Cuts 4,800 Jobs in Xbox Overhaul [thepodiummedia.com]
20 days ago
Microsoft anuncia 4. 800 despidos en una nueva reestructuración vinculada al avance de la IA [theobjective.com]
20 days ago
Are We Entering a New Golden Age for Indie Game Development? [www.torontofilmschool.ca]
19 days ago
Microsoft lays off nearly 5,000 employees across Xbox, commercial sales - UN STORE [unstore.com.np]
20 days ago
id Software Allegedly Cut In Half By Xbox Reset [wolfsgamingblog.com]
19 days ago
Este era el "giro" al que se refería la CEO de Xbox: 3. 200 despidos y abandono de 4 estudios de desarrollo [www.geeknetic.es]
20 days ago
Xbox y un reset que será lento y doloroso [akihabarablues.com]
20 days ago
XBOX部門の過去最大級レイオフ、現場から“寝耳に水”と悲鳴上がる。『アウター・ワールド』開発元Obsidianのベテランや、「昇給したばかり」のスタッフも対象に - AUTOMATON [automaton-media.com]
20 days ago
Xbox vai demitir 3. 200 funcionários e se livrar de cinco estúdios de jogos, mas há boas notícias – Avalache Notícias [avalanchenoticias.com.br]
20 days ago
Microsoft eyes studio closures and Blade cancellation in latest Xbox overhaul [bandwidthblog.co.za]
22 days ago
Resetting XBOX: Xbox streicht 3. 200 Stellen und baut Konzern radikal um [gamerliebe.de]
20 days ago
Microsoft to cut 4,800 jobs [businessplus.ie]
20 days ago
Microsoft vor möglichem Jobabbau: Vertrieb, Beratung und Xbox betroffen [www.chip.de]
22 days ago
Produtora de DOOM afetada por despedimentos [www.eurogamer.pt]
20 days ago
Microsoft Announces 4,800 Layoffs, Xbox Division Faces Deep Workforce Overhaul - Business Upturn [www.businessupturn.com]
20 days ago
Reset w Xboksie. Ninja Theory i Undead Labs sprzedane, Double Fine i Compulsion Games stają się niezależne [cdaction.pl]
20 days ago
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20 days ago
Microsoft Axes Thousands Of Jobs As Reality Of AI Era Sets In | CDN [conservativedailynews.com]
20 days ago
Obsidian perde circa il 25% del personale - News Playstation 5, Xbox Series X|S | Console-Tribe [console-tribe.com]
20 days ago
Obsidian, Developer Of The Outer Worlds and Avowed, Loses 25 Percent of Staff | Console Creatures [www.consolecreatures.com]
20 days ago
Xbox demite quase toda equipe de programação da Id Software e corta 60 a 70 devs da Obsidian [criticalhits.com.br]
20 days ago
Microsoft Cuts 4,800 Jobs and Plans to Spin Off Four Xbox Studios [www.technobezz.com]
20 days ago
Yapay zeka dönüşümü: Microsoft'tan dev işten çıkarma planı | Paratic [paratic.com]
20 days ago
Suscripciones Xbox Game Pass: Situación y cambios en el servicio [eloutput.com]
19 days ago
Microsoft cuts 4,800 job as it revamps Xbox - Spotlight Magazine [spotlightmagazine.ca]
20 days ago
Az Xbox benézte, még a Game Pass is elmaradt a cég várakozásaitól [esport1.hu]
20 days ago
e15. cz - Microsoft propustí tisíce zaměstnanců, restrukturalizace tvrdě zasáhne herní divizi Xbox [www.e15.cz]
20 days ago
微軟加入 AI 所掀科技業裁員潮，砍 4,800 名人力 [technews.tw]
20 days ago
Microsoft anuncia miles de despidos mientras acelera su apuesta por la IA - FM Mundo [fmmundo.com]
20 days ago
Miljarden naar ai, duizenden banen weg: de grote herschikking in de techsector - Computable. be [www.computable.be]
21 days ago
Xbox entlässt etwa 3. 200 Mitarbeiter, Double Fine und Compuls, ihre Unabhängigkeit zurückzugewinnen [www.gamereactor.de]
20 days ago
Selon un rapport, Id Software et ZeniMax Online Studios vont survivre à la « réorganisation de Xbox » [www.gamereactor.fr]
20 days ago
XBOX si riorganizza: fino a 3. 200 tagli, nuovi assetti e quattro studi verso l'indipendenza [gametimers.it]
20 days ago
Teknoloji devinde tarihi şeffaflık: Microsoft Türkiye’den ne kadar kazandı? Resmi rakamlar sızdı! [www.gazetebirlik.com]
20 days ago
Cơn bão sa thải chưa tan: Microsoft cắt giảm 4. 800 người, thu hẹp mảng game, tăng đầu tư AI [genk.vn]
20 days ago
Xbox Game Pass : Découvrez les 11 nouveautés incontournables de juillet 2026 - HDFever [hdfever.fr]
19 days ago
„Die Zukunft beginnt jetzt – nutze sie!“ [www.hwk-do.de]
19 days ago
XBOX裁员后《辐射：新维加斯》开发商黑曜石担心项目难继续 [www.ign.com.cn]
19 days ago
Xbox startet größte Umstrukturierung seiner Geschichte [www.insidexbox.de]
20 days ago
Microsoft streicht 4. 800 Jobs - KI-Automatisierung und Rechenzentrumskosten erhöhen Druck [www.it-boltwise.de]
20 days ago
Rare également dans la tourmente [www.jeuxpo.com]
20 days ago
Microsoft Starts Routing Excel and Outlook AI Prompts to Its Own MAI Models [www.technobezz.com]
19 days ago
MICROSOFT | Xbox colapsa entre despidos y reestructuraciones de estudios con el futuro de Minecraft en vilo [www.lacronicabadajoz.com]
20 days ago
Microsoft recorta 4. 800 empleos, muchos en Xbox, en “reinicio” de su división de videojuegos – LaVoz Hispana [lavozhispanact.com]
20 days ago
Xbox licencie 6400 personnes et rend leur liberté à des studios [lesinguliersete.fr]
20 days ago
Rendkívüli bejelentést tett a világ egyik legismertebb cége – több ezer dolgozót küldenek el [liner.hu]
20 days ago
Microsoft 4 bin 800 kişiyi daha işten çıkarıyor [www.malatyaguncel.com]
20 days ago
Xbox confirma una histórica reestructuración: recortará miles de empleos y se desprenderá de cinco estudios [www.masgamers.com]
20 days ago
Minecraft va-t-il enfin changer ? Xbox reprend directement la main sur Mojang [www.minecraft-france.fr]
20 days ago
Microsoft zlikwiduje tysiące miejsc pracy. Restrukturyzacja Xbox [biznes.interia.pl]
20 days ago
KI in der Finanzbranche: Die grösste Hürde liegt im Organigramm [www.moneytoday.ch]
19 days ago
Xbox Game Pass Subscriber Numbers Reportedly Fail to Hit Outrageous Expectations [comicbook.com]
20 days ago
Microsoft streicht 4. 800 Stellen, Xbox verliert 3. 200 Jobs [news-krypto.de]
20 days ago
Microsoft Despide A 3. 200 Empleados De Xbox En Una Reestructuración Sin Precedentes [www.elperiodico.digital]
19 days ago
Microsoft a stricat gamingul și acum doar gamerii au de suferit - nwradu blog [www.nwradu.ro]
19 days ago