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XBOX DIVISION BRACES FOR MAJOR LAYOFFS

INDUSTRY DESK1 MIN READ
THU, JUN 11, 2026

■ AI-SUMMARIZED FROM 3 SOURCES ▸ TIMELINE

Microsoft's Xbox division will undergo significant layoffs next month, with reports suggesting cuts could reach around 1,000 employees. The move may also include studio closures or restructuring of Xbox's gaming lineup.

Xbox CEO Asha Sharma hinted at the cuts last month when she referenced "making hard choices" for the division. Microsoft has been preparing internally for weeks ahead of the restructuring. The scope of the layoffs remains unclear, but sources indicate potential studio closures or changes to the Xbox studio portfolio are on the table. Bloomberg first reported the layoffs, while gaming outlet Giant Bomb cited rumors of approximately 1,000 affected employees across the division. This marks another round of tech industry restructuring, as companies continue adjusting their workforces. Xbox's parent company Microsoft has conducted multiple rounds of layoffs in recent years, including cuts to its gaming division previously. The exact timeline for announcements and the specific studios or roles affected have not been detailed. More information is expected as next month approaches.

■ SOURCES

The VergeEngadgetTechmeme

■ SUMMARY WRITTEN BY AI FROM THE LINKS ABOVE

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