- Xbox has confirmed that it is laying off 1,600 employees later today.
- CEO Asha Sharma has also announced that Xbox headcount will be reduced by over 3,000 employees by the end of FY27.
- The brand is currently going through a major restructuring, and four studios are also changing management.
Following back-to-back rumors regarding Xbox’s layoffs, Microsoft has finally come forward with an official update. According to Xbox CEO Asha Sharma, the layoffs are officially set to begin today and will continue throughout FY2027.
Why it matters: Microsoft and Xbox have previously laid off thousands of employees at a time, and the latest announcement highlights that this trend isn’t going away anytime soon.
Asha Sharma confirms that 1,600 Xbox roles will be eliminated later today, marking one of the biggest rounds of layoffs in the brand’s history. However, this is not all. Xbox intends to double this amount throughout the Fiscal Year, taking the number of laid-off employees up to nearly 3,200 by the end of FY27.
As part of the change in management, Xbox also intends to remove four studios from its first-party lineup. The good news here is that the gaming giant will help these studios stay up and running despite the change in management.
Among the current first-party lineup, Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs will change hands. However, Xbox will still fund these teams for a while to help finish work on existing projects.
Asha Sharma’s latest post on Twitter is an extensive one and goes into detail regarding the future of the brand. Needless to say, the gaming giant has made a huge switch, and this may be one of many such pivots for the company in the near future.
The confirmation of layoffs also continues the trend of upsetting news in the industry, especially with PlayStation discontinuing physical discs, hardware becoming more expensive, and more.
What do you think about the layoffs? Let’s discuss in the comments and on the Tech4Gamers Forums.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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