Microsoft’s Xbox Streamlining Cuts Thousands of Jobs
SOURCENews reportView the filing ↗
What we know
Department affected: Xbox / Xbox Game Studios.
Based on news reporting.
Summary
Microsoft’s Xbox division has undergone multiple rounds of job cuts since the company closed its acquisition of Activision Blizzard, with Game Developer reporting at least 5,750 jobs cut across five rounds of mass layoffs. One round confirmed in July will remove 3,200 people from Xbox Game Studios by the end of the fiscal year, and more recent actions included 268 layoffs, studio closures (including Ninja Theory) and studio consolidations. CEO Satya Nadella described the reductions as “streamlining” as Xbox reorganizes under new head Asha Sharma while pursuing a sustainable business model and potential ad-supported cloud-gaming initiatives. Xbox leadership framed the cuts as aligning and consolidating business units to strengthen franchises, and said the restructuring is roughly three-quarters complete.
Microsoft Corporation cut 5,750 jobs affecting its Xbox / Xbox Game Studios team as of May 13, 2025.
That is roughly 2.5% of the 228,000 people Microsoft Corporation employs.
LayoffTalk has tracked 52 layoff events at Microsoft Corporation since January 2023, including 4,344 jobs documented in official WARN filings, with 37 additional events known from news reporting.
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