Microsoft's Xbox Division Prepares for Significant Layoffs

Microsoft's Xbox division is anticipating significant layoffs scheduled for next month. The company has been preparing internally for weeks, with Xbox CEO Asha Sharma previously referencing "making hard choices." Reports suggest these cuts could lead to a studio closure or alterations to the existing Xbox studio lineup.

By Fainaron·Jun 10, 2026 (2 days ago)·1 views

Microsoft's Xbox Division Prepares for Significant Layoffs

Microsoft's Xbox division is set to undergo significant layoffs next month. The company has reportedly been preparing for these internal workforce reductions for several weeks.

Xbox CEO Asha Sharma hinted at the impending changes last month, mentioning the need for "making hard choices."

Sources familiar with the plans suggest the upcoming cuts might include the closure of an entire studio or other modifications to the Xbox studio lineup. Rumors circulating on a recent Giant Bomb episode indicated a potential figure of 1,000 layoffs within the Xbox division. Bloomberg also reported that these cuts would be "major."

Following Bloomberg's report, Xbox CEO Asha Sharma and chief content officer Matt Booty distributed a memo to Xbox staff.

According to The Verge, these impending layoffs represent a significant restructuring within the gaming division.

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Source attribution: This article was AI-curated and rewritten by Fainaron from a piece originally published by The Verge. Read the original at The Verge →

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