TECHNOLOGY · VERIFIED DEVELOPMENT
Microsoft Cuts 268 Xbox Jobs Amid Ongoing Reset
WHY IT MATTERS
The layoffs highlight Microsoft’s ongoing effort to reshape Xbox, affecting employee morale and the stability of its game development pipeline.
What happened
Microsoft announced a week‑long round of layoffs that cut 268 positions across its gaming division, part of a broader Xbox reset that has been underway for two years. The company also shuffled major studios and franchises, a move that follows earlier mass cuts that began in early 2024.
Current and former Xbox employees report that the repeated shutdowns of studios and the constant reshuffling have taken a toll on morale.
The latest round of job cuts underscores the continued scale of the restructuring and the uncertainty facing the division’s future projects.
PRIMARY SOURCES
The Xbox reset gets ugly
The Verge · Tom Warren · Discovery only; Vox Media copyright terms apply
CORRECTIONS & UPDATES
- Revision 1 · Initial ingestion · Sep 24, 2026, 4:31 PM
- Revision 2 · Source update detected · Sep 24, 2026, 4:31 PM