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XBOX is reportedly planning three consecutive rounds of layoffs scheduled for October, November, and January 2027. These cuts are part of a broader restructuring initiative announced in July by CEO Asha Sharma, which aims to reduce the workforce by a total of 3200 employees.
According to Fortune, which cited individuals familiar with the company's internal plans, the ongoing consolidation affects XBOX Game Studios, Bethesda Softworks, and Activision Blizzard King. The restructuring follows years of studio closures and strategic shifts within the conglomerate.
The layoffs have reportedly resulted in a loss of institutional knowledge, as long-term employees depart the firm. While some staff members appreciate Sharma's transparency regarding the business's previous unsustainability, others remain demoralized by the persistent uncertainty surrounding their job security.
The company's current strategy focuses on prioritizing major franchises like Call of Duty and Halo while exploring generative AI and new hardware, including the XBOX Helix family. Meanwhile, the future of specific studios like Ninja Theory and Arkane Lyon remains unclear following recent organizational changes.
