Xbox Reports Recovery After 3,200 Layoffs and Studio Closures

NewsData.io · United States · Oct 7, 2026

Xbox CEO Asha Sharma told staff that following a period of financial "freefall" tied to its Game Pass strategy, first-party revenue has returned to growth — more than two to three times prior levels. The rebound comes months after approximately 3,200 job cuts across fiscal year 2027 and the divestiture or closure of several game studios including Compulsion Games, Double Fine, Undead Labs, and Ninja Theory. The 3,200-person reduction at a major gaming division signals a significant pool of displaced tech, creative, and operations talent entering the market.