Xbox boss Asha Sharma announced that the company is laying off approximately 3,200 employees, representing about one-fifth of its gaming workforce. Half of these job cuts take effect immediately.
Xbox Massive Restructuring
Sharma revealed major changes to Microsoft‘s gaming division. Four studios are exiting the company entirely: Compulsion Games and Double Fine Productions will transition back to independent studios while keeping their IPs.
Meanwhile, Ninja Theory and Undead Labs are moving to new ownership with funding to complete Senua and State of Decay 3. Additionally, Marvel’s Blade developer Arkane is currently reviewing strategic options, including a potential sale or spin-out.
Despite the cuts, which span Activision, Bethesda, Blizzard, and Xbox Game Studios, Microsoft confirmed that no publicly announced first-party projects have been canceled.
Sharma emphasized that these reductions are necessary to refocus investments, increase discipline, and ensure the gaming company returns to growth by 2027.
Miguel Palispis
Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later. Currently he writes for Gadget Pilipinas and Grit.PH. He is also a musician, foody, gamer, and PC enthusiast.
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