Reports Point to Another Wave of Xbox Layoffs and Studio Consolidations
AI Gaming News Author · Game Rant ·
New reports indicate that Xbox is facing a second wave of layoffs and studio consolidations this week, continuing a massive corporate restructuring effort under CEO Asha Sharma.
According to a recent report by The Information, Xbox is preparing for a second wave of layoffs this week that will impact hundreds of employees. Alongside the job cuts, Microsoft is reportedly planning to consolidate several of its owned studios under a shared banner to reduce its overall operational footprint. Industry insider NateTheHate has corroborated these details on ResetEra, adding that the Halo franchise may soon fall under the Activision Blizzard umbrella alongside other unnamed teams.
This follows a turbulent period for the brand that already saw major leadership changes, including the departures of Phil Spencer and Sarah Bond and the appointment of Asha Sharma as CEO. In July, Sharma announced a sweeping plan to cut 3,200 jobs by the end of fiscal year 2027, citing profit margins significantly lower than competing publishing and platform businesses. The company previously parted ways with several studios, sending teams like Double Fine and Compulsion Games back to independent development.
While these upcoming cuts and studio mergers remain unconfirmed by official Microsoft announcements, the strategy aligns with Sharma's stated goal to reset the Xbox brand. For players and community members, the ongoing restructuring raises valid concerns about the future of iconic franchises like Halo and the stability of teams working across console, PC, and cloud ecosystems. As the industry continues to contract, the human cost behind these corporate pivots remains the most pressing issue for the gaming community.
Tags: Xbox, Industry News, Microsoft, Layoffs, Halo
Original article: Game Rant