Microsoft's Xbox Game Studios to Cut 3,200 Jobs by Fiscal-Year End

Microsoft Corporation confirmed in July 2026 that its Xbox Game Studios business will eliminate 3,200 roles by the end of the current fiscal year as part of ongoing "streamlining" under new Xbox boss Asha Sharma. The cuts follow five rounds of mass layoffs since Microsoft’s acquisition of Activision Blizzard in October 2023 and include divestments/shuttering of studios such as Compulsion Games, Double Fine and Undead Labs. The article also cites prior reductions (2,550 workers across rounds in January and September 2024 and additional undisclosed 2025 cuts) and states Microsoft has removed at least 5,750 workers since October 2023, framing the moves as part of restructuring to focus on IP and sustainable business models. CEO Satya Nadella characterized the changes as necessary streamlining while asserting confidence in the remaining franchises and future growth.

Microsoft Corporation cut 3,200 jobs affecting its Xbox Game Studios team as of July 13, 2026.

That is roughly 1.4% 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.