Xbox Layoffs: Hundreds of Jobs Could Be Cut in Major Microsoft Gaming Restructuring

NewsData.io · United States · Sep 22, 2026

Microsoft's Xbox division is reportedly planning hundreds of additional layoffs this week, potentially consolidating multiple game studios across Xbox Game Studios, Bethesda, Activision, and Blizzard. The cuts would follow 1,600 roles eliminated in July and an additional 1,600 planned through fiscal 2027, as Microsoft narrows its development focus to major established franchises. Bloomberg's Jason Schreier separately indicated Blizzard layoffs are 'imminent.' For staffing firms serving the tech and gaming sectors, the ongoing restructuring signals continued headcount contraction at one of the industry's largest employers.