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Xbox to Lay Off Up to 3,200 Staffers in ‘Most Significant Restructure’ in Company’s History

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CitrixNews Staff
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Xbox to Lay Off Up to 3,200 Staffers in ‘Most Significant Restructure’ in Company’s History
Jul 6, 2026 6:31am PT Xbox to Lay Off Up to 3,200 Staffers in ‘Most Significant Restructure’ in Company’s History

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Jennifer Maas

TV Business Writer

@jmaasaronson See All Xbox Courtesy of Xbox

Xbox is set to lay off 1,600 staffers Monday and up to another 1,600 over the next year in what new CEO Asha Sharma calls the “most significant restructure” in the Microsoft division’s history.

In addition, four Xbox studios — Ninja Theory, Undead Labs, Compulsion Games and Double Fine Productions, which collectively employee approximately 350 people — will be spun out or sold, per Sharma’s memo to staff announcing the changes, which the Xbox CEO posted on X on Monday.

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