The company Xbox, owned by Microsoft, is facing another threat of mass layoffs. According to the latest reports, the corporation plans to conduct another round of staff reductions. The goal of these measures is to improve the position of the gaming industry that the company faces, as well as to reduce overall costs.
According to Fortune, Xbox CEO Asha Sharma intends to carry out new cuts in November and January. The exact number of employees who may be laid off is currently unknown. This news has caused serious anxiety among employees, many of whom have already seen colleagues leave.
Asha Sharma became CEO of Xbox in February 2026 and has since been implementing significant changes aimed at saving money. In a message sent to employees, she noted that Xbox's current operations are in a difficult state. Furthermore, she indicated that previous plans and investments have not yielded the expected success.
Microsoft is not limited to reducing personnel to improve its business. The company is also working on reducing external contractor costs. Additional management levels are being eliminated to simplify and speed up the structure of governance. As part of these transformations, Xbox is changing its approach to managing its game studios. Fortune reports that studios such as Double Fine Productions and Compulsion Games have been made independent again. There are also rumors of the possible complete closure of Ninja Theory studio, which created the popular game Hellblade.
In the last three years, 5750 jobs have been cut in Microsoft's gaming division. Previously, in July 2026, the company announced a plan to cut 3200 jobs by the end of the 2027 fiscal year; at that time, about 1600 people were laid off, and another 260 employees were let go in September.
Following a series of layoffs and announcements of game studio closures, there were speculations that Microsoft might sell its Xbox business. However, the company's top management rejected these assumptions. Judson Altoff, a Microsoft representative, told Fortune that Sharma's appointment to this position proves the company's desire to retain this business. He emphasized that they do not entrust the management of a business they plan to sell, as this would cause many speculations. He added that time will tell.
Sharma herself also denied the sale rumors in an interview with The New York Times, stating that Xbox is not for sale.
Parallel to the restructuring and layoffs, Xbox continues to work on new gaming devices. According to Fortune, the company plans to introduce a new portable gaming device in 2027, and a next-generation home console may be released in 2028. This project has temporarily been named 'Project Helix.'
Currently, Xbox employees are awaiting an official statement from the company regarding the layoffs. Microsoft is simultaneously working on cost reduction and changing the structure of management and game studios while continuing to develop new devices. These steps indicate large-scale changes occurring in the company's gaming business.