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Xbox CEO Asha Sharma Announces Three More Rounds of Layoffs Amid Ongoing Restructuring
CURRENT STATUS
Active · revision 3 · last updated October 20, 2026 at 7:30 PM
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LATEST MATERIAL CHANGE
What changed?
Xbox CEO Asha Sharma has outlined plans for additional layoffs this month, in November, and in January, according to Fortune. The move follows a July announcement that Microsoft would cut 3,200 Xbox employees during its 2027 fiscal year, including 1,600 staff in July and about 260 in September. Sharma’s restructuring also saw Double Fine and Compulsion Games spun off as independent studios, while the Senua developer Ninja Theory faces potential closure. Industry observers note speculation that Xbox could be spun off or sold, with Microsoft’s commercial leadership, including Judson Althoff, weighing in on the future of the division.
Why it matters
The layoffs signal a deepening shift in Microsoft’s gaming strategy, affecting thousands of employees, studio operations, and the broader Xbox ecosystem.
TIMELINE
Previous updates
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Revision 1 · Initial ingestion
LINKED SOURCES
The Verge · Jay Peters · Discovery only; Vox Media copyright terms apply