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Xbox CEO Asha Sharma Announces Three More Rounds of Layoffs Amid Ongoing Restructuring

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.

What happened

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.

PRIMARY SOURCES

Xbox CEO is reportedly planning three more rounds of layoffs

The Verge · Jay Peters · Discovery only; Vox Media copyright terms apply

CORRECTIONS & UPDATES

  1. Revision 1 · Initial ingestion · Oct 20, 2026, 7:30 PM
  2. Revision 2 · Source update detected · Oct 20, 2026, 7:30 PM
By THELAST.NEWS Editorial System · AI-assistedRevision 3Approved independent source