More layoffs coming from Xbox, Microsoft’s gaming division! According to foreign media reports, Xbox CEO Asha Sharma is reportedly preparing for a new round of personnel adjustments, with layoffs potentially happening in October 2026, November 2026, and January 2027. This means the restructuring plan announced by Xbox this year could continue affecting employees, with more changes expected in the coming months. However, these reports remain unconfirmed, and Microsoft has not officially verified these three rounds of layoffs, so the actual timeline and number of affected employees remain to be seen.
Already Announced 3,200 Job Cuts This Year, September Saw More Layoffs
Looking back at July this year, Asha Sharma announced that Xbox planned to cut approximately 3,200 positions within Microsoft’s fiscal year 2027, with about 1,600 positions being eliminated immediately. By September, around 260 more Xbox employees were affected by layoffs, showing that this restructuring isn’t a one-time adjustment but is being carried out in phases. The company explained at the time that Xbox’s business performance and profit margins were under pressure. While strategies like Game Pass and multi-platform publishing have delivered some value, they haven’t achieved the expected growth rate, necessitating a reorganization of the company’s scale and investment direction.
This ongoing wave of layoffs reflects the broader challenges facing the gaming industry in 2026. With market conditions tightening and companies prioritizing profitability over expansion, thousands of workers have been affected across the sector. Xbox’s continued restructuring suggests the company is still working to find the right balance between its gaming ambitions and financial sustainability.