High impactLayoffs

Microsoft Xbox Confirms 268 More Job Cuts in Second Round of Studio Layoffs

NewsData.io · United States · Sep 22, 2026

Microsoft has confirmed 268 additional layoffs at Xbox as part of a sweeping studio reorganization, including the proposed closure of Ninja Theory and structural changes across Xbox Game Studios, Bethesda, Activision, and Blizzard. This follows an initial round of 1,600 redundancies from a previously announced plan to cut 3,200 employees. CEO Asha Sharma cited over-expansion and organizational fragmentation as drivers, noting platform headcount grew 40% while player base and play time declined. The restructuring signals continued contraction in the gaming sector, reducing hiring demand for specialized game development and studio operations roles.

MicrosoftXboxBethesdaActivisionBlizzardNinja TheoryObsidianArkaneCompulsion GamesDouble Fine ProductionsUndead LabsZenimax Online Studiosgamingtechnologyentertainmentmedia

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