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Microsoft is selling off four Xbox studios as part of significant gaming cuts
·1 min read
Key Takeaway
Microsoft is laying off 4,800 employees today, and more than 30 percent of the job losses are in the company's Xbox division. The significant gaming cuts will affect nearly every part of Xbox and also involve four game studios being spun off to be run independently from Microsoft.
Published July 6, 2026 · Category: Tech
Overview
Microsoft is laying off 4,800 employees today, and more than 30 percent of the job losses are in the company's Xbox division. The significant gaming cuts will affect nearly every part of Xbox and also involve four game studios being spun off to be run independently from Microsoft.
Today's layoffs, which are being described as an Xbox "reset" moment, will impact around 1,600 Xbox employees, according to an internal memo from Xbox CEO Asha Sharma. The cuts won't end today though, as Microsoft is planning to eliminate a total of around 20 percent of Xbox jobs by the end of the financial year in July 2027. These figures don't include the hundre …
What is "Microsoft is selling off four Xbox studios as part of significant gaming cuts" about?+
Microsoft is laying off 4,800 employees today, and more than 30 percent of the job losses are in the company's Xbox division. The significant gaming cuts will affect nearly every part of Xbox and also involve four game studios being spun off to be run independently from Microsoft. Today's layoffs, which are being described as […]
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