Xbox Announces 3,200 Layoffs: Half Begin Today

The long-feared day has arrived: after weeks of rumors, Xbox has unveiled its restructuring plans, a measure decided after years of market share losses and profits that did not align with forecasts. The sad announcement was made by Asha Sharma, who communicated chilling numbers: Microsoft's gaming division will carry out 3,200 layoffs during the 2027 fiscal year, half of which begin today.

How the new Xbox will work

In her message, Sharma speaks of an Xbox that is currently too fragmented. Therefore, the internal hierarchical organization has been completely revised, with the aim of streamlining its structure and making decision-making processes faster and more efficient. As for the chain of command, the most significant novelty is the establishment of a Chief Operating Officer, a position that will be held by Helen Chiang: her task will be to unify all Xbox activities into a single model.

Studios and games are safe, for now

Despite the heavy wave of layoffs, studios and future projects are expected to be safe. Specifically,  Compulsion Games and Double Fine Productions will return to being independent and will retain their intellectual properties. Ninja Theory and Undead Labs are also moving towards independence, but will receive additional funding from Xbox, which will allow them to complete Senua and State of Decay 3. The only entity remaining in doubt is Arkane, which is internally evaluating its next steps.