Microsoft Reportedly Planning Hundreds Of Xbox Layoffs And Studio Consolidations
source: Nintendo LifeMicrosoft is preparing a second significant round of staff cuts within its Xbox division this week, with hundreds of roles expected to go. A report from The Information also outlined plans to merge…
Microsoft is preparing a second significant round of staff cuts within its Xbox division this week, with hundreds of roles expected to go. A report from The Information also outlined plans to merge multiple internal game development studios.
The publication noted that exact details of the studio combinations remain unconfirmed. Structural changes will affect various development teams.
These operate under the wider Microsoft gaming umbrella, which includes Xbox Game Studios, Activision, Blizzard, and Bethesda.
Xbox chief executive officer Asha Sharma kicked off a major restructure in July. Microsoft reduced its gaming workforce by approximately 1,600 positions during this phase. It also parted ways with several owned developers.
Continuing Reductions
Teams at Doom developer id Software and The Elder Scrolls Online creator ZeniMax Online Studios felt the July cuts. Microsoft previously detailed plans to cut another 1,600 positions before the end of the 2027 financial year.
Sharma described a vision to reset the Xbox business at a Bloomberg technology conference mid-year. Previously acquired developers Double Fine Productions and Compulsion Games returned to independent operation.
Undead Labs and Ninja Theory struck deals too, with new owners taking over both teams.
Microsoft shed 1,900 gaming roles across Activision Blizzard earlier this year. It had cut 9,000 jobs the year before. The cancellation of a Perfect Dark reboot and Rare's unreleased Everwild project followed.
Blizzard Impacts
Upcoming changes will likely hit teams that largely avoided the July restructure. Bloomberg reporter Jason Schreier noted during a recent 8-4 Play podcast episode that staff cuts at Blizzard Entertainment are approaching.
Blizzard is balancing multiple major upcoming releases. The developer recently revealed early plans for a new Starcraft project targeting 2030, alongside Diablo V and World of Warcraft: Forever.
Despite broader platform strategy shifts and internal consolidation, Microsoft continues to support rival hardware. Blizzard launched the Diablo IV is Age of Hatred Collection for Nintendo's Switch 2 hardware last week.
Mojang is also preparing to release Minecraft Dungeons II across both Nintendo Switch generations later this month. Microsoft has yet to officially confirm the exact number of roles impacted by this week's planned restructure.
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