Xbox to Enter Third Round of Layoffs Following Recent Job Cuts
- Xbox plans three new rounds of layoffs, starting this month.
- Previous job cuts in September eliminated 268 roles, following over 1,600 cuts in July.
- Concerns rise over the future of The Coalition amid speculation of further cuts.
Xbox is reportedly preparing for three additional rounds of layoffs as part of CEO Asha Sharma’s ongoing efforts to reshape the Microsoft gaming division. According to a recent report, the first of these layoffs is expected to occur this month, with subsequent rounds planned for November and January 2027.
This information comes from “people familiar with the plans,” who shared details with Fortune Magazine. It was also noted that these plans could change.
If confirmed, this would mark the second wave of layoffs within two months, following September’s elimination of 268 positions, which accompanied structural changes that positioned Obsidian under Bethesda and integrated Rare and World’s Edge into Activision.
These layoffs form part of a broader strategy by Xbox to reduce costs and restore profitability, with the first major wave occurring in July that resulted in over 1,600 job losses. The remaining 1,600 roles are anticipated to be addressed in future quarters, concluding in early 2027.
While the recent report outlines the timeline for the upcoming cuts, it does not specify which teams may be affected, especially considering the extensive job reductions already implemented at some of Xbox’s most significant studios.
Of particular concern is the fate of The Coalition, the Canadian studio behind Gears of War: E-Day, which has recently launched a title that has reportedly not met sales expectations. Members of The Coalition’s development team have expressed anxiety over potential staffing reductions following the release of their latest project. Many are also apprehensive that the timing of any layoffs could be manipulated to deny affected employees their expected bonuses.
As October progresses, if the provided information holds true, announcements regarding the layoffs could come as soon as this week or next. Additionally, the report disclosed that Xbox is internally estimating next-generation Helix consoles to be priced between $1,200 and $1,800.
News Courtesy of Eurogamer
