Microsoft Plans 3,200 Xbox Layoffs by Mid-2027, Including 268 Roles at Halo Studios

NewsData.io · United States · Sep 22, 2026

Microsoft is executing its largest-ever Xbox restructuring, with Xbox CEO Asha Sharma confirming approximately 3,200 total role eliminations through FY2027. An initial wave of 1,600 cuts was announced earlier this year, and a new round affecting 268 roles at Halo Studios, Rare, and World's Edge is now underway, alongside studio consolidations. The extended, phased timeline — stretching over a full fiscal year — reflects a broader gaming industry contraction that staffing firms serving tech and creative sectors should monitor for displaced talent and reduced hiring demand.