Location: Redmond, Washington.
Department affected: Xbox / video-game studios.
Based on news reporting.
Microsoft Corporation’s Xbox division carried out a major restructuring that resulted in the elimination of roughly 1,000 jobs and the closure or dropping of multiple game studios. The cuts, centered in Xbox’s game-development arm in Redmond, Washington, were part of a strategic reset aimed at refocusing resources away from some internally run studios and toward broader priorities. Microsoft cited business pressures and a need to streamline operations in its gaming unit as reasons for the layoffs and studio shutdowns. The move affects several teams within Xbox and is part of larger industry consolidation and cost-control trends in gaming.
Microsoft Corporation cut 1,000 jobs affecting its Xbox / video-game studios team as of July 6, 2026.
That is roughly 0.4% of the 228,000 people Microsoft Corporation employs.
LayoffTalk has tracked 51 layoff events at Microsoft Corporation since January 2023, affecting a combined 124,423 employees.
Anonymous by default. Be kind — people reading this may be going through it right now.
Microsoft Corporation cut 1,000 jobs on July 6, 2026. Were you affected, or do you know people who were? How was it handled — severance, notice, which teams? You can post anonymously below.
Share your story anonymously — it helps others reading this feel less alone.
Share your story →Recent tracked events at this company.