- Xbox CEO Asha Sharma is planning the next three rounds of layoffs despite firing over 1800 developers.
- The next wave of layoffs will arrive later this month, followed by one in November and the third in January.
- Xbox is expected to ditch nearly 3200 staff by the end of FY27 to streamline its business.
Xbox is undergoing a devastating restructuring scheme in order to salvage the gaming brand under Asha Sharma’s new leadership. The company has already seen multiple waves of layoffs that have seen over 1800 developers dismissed since she took the brand’s mantle.
A new report now reveals Asha Sharma is already planning the next three rounds of dismissals that will hit Xbox over the coming months. A new wave will reportedly arrive later this month, but two more will follow suit in November and January 2027.
Why it matters: Xbox is taking drastic measures to shed extra weight from its gaming brand as Microsoft boss Satya Nadella demands profitability from the brand by June 2027. These controversial firings also risk wiping out years of crucial talent.
The report from Fortune confirms that Asha Sharma has slashed jobs from several management layers, and at least three new waves will hit Xbox over the coming months. But the forthcoming layoff plans are also susceptible to change.
A motley of talented staff have already been fired across various major studios, including those who worked at Xbox for decades. This threatens a loss of ‘valuable institutional knowledge’ that the brand might severely need to face the upcoming volatile times.
Another report suggested that Xbox will inevitably lay off fewer than the initially stated 3200 figure, thanks to leadership’s decision to restructure studios instead of closing them.
While Xbox has faced a lot of flak for these firings, a new report revealed that positive sentiment around the brand has risen since Asha Sharma took over. The brand has won favor from Xbox users mostly for returning to first-party exclusives, at least partially so far.
However, a new survey suggests Xbox could embrace full exclusivity for all its franchises besides COD.
Do you think we will see hundreds of additional layoffs at Xbox in just the next few months? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devotedly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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