The incredible shrinking Xbox: Five studios, 3,200 employees let go

Xbox announced approximately 3,200 layoffs throughout fiscal 2027 as part of the most significant restructure in its history , with 1,600 staff cut immediately on July 6, 2026 . Four video game studios will be leaving Xbox , including Double Fine Productions and Compulsion Games becoming independent with their IP and game catalogs . Xbox lost 64 cents for every dollar invested across its portfolio , prompting CEO Asha Sharma's decision to reset the company's strategic direction.

Source: Ars Technica | 2026-07-06