Microsoft Cuts Hundreds of Xbox Jobs and Plans Studio Closures

Job Cuts

Microsoft is laying off about 260 employees in its Xbox division as part of a major reorganization of its gaming business. These job cuts form part of a broader plan that expects 3,200 roles to be impacted during the company's financial year that ends in July 2027. Earlier this year, 1,600 Xbox workers lost their jobs in a move that Xbox CEO Asha Sharma described as the biggest restructure in the brand's history.

Studio Changes

Apart from the layoffs, Microsoft is selling or closing several gaming studios. Double Fine and Compulsion Games have already turned independent, while a deal to sell Undead Labs is still moving forward. However, attempts to sell Ninja Theory have failed multiple times. Microsoft is now starting a consultation period to close Ninja Theory unless another buyer appears. Meanwhile, Activision is taking over the Halo franchise, Sea of Thieves, and World's Edge, which is the studio behind Age of Empires.

Official Statements

Xbox chief content officer Matt Booty stated that the company is cutting 268 roles across Halo Studios, other first-party studios, and management teams. Booty noted that actions taken since July put the company about three-quarters of the way through its planned restructuring. He also confirmed that after two agreements for Ninja Theory fell through, the company will begin consultations on a proposed closure while still looking for other options. In addition, the future of titles like Arkane and Blade remains unclear because labor consultations in France are ongoing and will run through the end of the year.