Xbox reportedly set to announce second round of layoffs this week
Xbox is reportedly preparing a second round of layoffs this week as part of ongoing restructuring efforts, following an initial announcement of 3,200 job cuts in July.
Microsoft confirmed the loss of 268 jobs as part of a reorganization of its internal studios, including the proposed closure of Ninja Theory. The restructuring aims to consolidate several game studios under Xbox Game Studios, Bethesda, Activision, and Blizzard, with potential mergers or internal changes. This follows an initial round of 1,600 redundancies in July, which included significant job losses at Obsidian, Bethesda, Id Software, and Zenimax Online Studios.
Xbox CEO Asha Sharma attributed the restructuring to the company spreading itself too thin, stating that growth strategies led to a lack of focus on core business. Sharma noted that platform teams had grown by 40% since the start of the current hardware generation, while player base and play time declined. The restructuring seeks to reduce management layers from up to 14 to five, addressing fragmentation within teams.
Sharma emphasized that the changes aim to position Xbox for long-term growth, with a goal of entertaining over a billion people daily. The company plans to return to growth by 2027, leveraging its global studio network. Sharma described the restructuring as necessary to streamline operations and improve efficiency across the organization.
Earlier this month, Xbox announced it would publish Kojima Productions' upcoming title Physint after Sony stepped away from the project. Sharma called the partnership a 'big moment' for Xbox, highlighting new collaborations as part of the company's broader strategy to expand its portfolio and reach.