Xbox’s new round of massive layoffs is coming, and multiple studios will be consolidated

📅 2026-09-22

Abstract:

Recently, foreign media VGC reported that Microsoft plans to lay off hundreds of Xbox employees again this week, starting the second wave of large-scale staff reductions this year, and integrating multiple of its game studios.

Xbox's new round of large-scale layoffs is coming, and multiple studios will be consolidated

The report did not elaborate on the specific implementation plan of this Xbox studio integration, but revealed that the integration plan will involve Xbox Game Studios, Bethesda, Activision and Blizzard's publishing business, and there will be studio mergers or internal staff transfers.

In July this year, Microsoft implemented a round of large-scale layoffs in the Xbox business segment. At that time, 1,600 positions were directly eliminated, and another 1,600 positions were planned to be cut before the end of this fiscal year. Microsoft has not yet confirmed the specific information on the remaining positions that will be eliminated. Blizzard, which develops "Diablo 5" and "World of Warcraft", suffered relatively limited impact in the last round of layoffs.

New Xbox CEO Asha Sharma proposed a plan to get Xbox back on the track of growth and reset the business. As the plan progresses, Xbox has terminated its affiliation with a number of its studios, and Compulsion Games and Double Fine Productions have returned to full independence. Ninja Theory and Undead Labs have also finalized relevant terms and will be taken over by new ownership.

In the first wave of layoffs, hundreds of people at ZeniMax Online, the development team for "The Elder Scrolls Online", lost their jobs, and about 100 people at id Software, which created the "Doom" series, were laid off.

When Sharma attended the Bloomberg Technology Conference, she announced that the current situation of the Xbox business was not healthy and that she was ready to complete the reset and adjustment of the entire business.

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