Xbox Plans Hundreds of Layoffs and Studio Consolidation Amid Microsoft Gaming Restructuring

NewsData.io · United States · Sep 22, 2026

Xbox is reportedly preparing to cut hundreds of jobs this week as part of an ongoing restructuring of Microsoft's gaming division, following 1,600 roles already eliminated in July and an additional 1,600 planned by year-end. The company also intends to consolidate several game studios, reduce focus on smaller acquired studios, and double down on major franchises like Elder Scrolls and Fallout. Microsoft has not publicly confirmed the latest round of cuts, and specific studios and final headcount figures have not been disclosed. The moves signal continued large-scale workforce contraction at one of the tech industry's largest gaming employers.