Xbox is reportedly preparing to cut hundreds more jobs and consolidate several studios, according to a new report from The Information. The development would extend Microsoft’s Xbox restructuring only months after the division announced 3,200 planned role reductions through fiscal 2027.
The report, as summarised by Playday, does not identify the studios involved or give a final number for the jobs at risk. It says the cuts could be announced this week. The Information’s report is subscription-only, so the details remain attributed to that outlet rather than confirmed by Microsoft.
Xbox layoffs would add to July’s restructuring
Microsoft’s July Xbox memo announced approximately 3,200 reductions across the division during FY27, including about 1,600 immediate eliminations. It also said four studios would leave Xbox ownership: Compulsion Games and Double Fine Productions would return to independence, while Ninja Theory and Undead Labs entered terms with new owners. Arkane’s management began a consultation process over its future.
The company said the changes would also affect Activision, Bethesda/ZeniMax, Blizzard, King, Mojang and Xbox Game Studios. Microsoft said publicly announced first-party projects would not be cancelled as part of that restructuring.
That earlier plan already represented about a fifth of Xbox’s workforce. Variety’s account reported that the division expected to keep content spending broadly level while shifting investment towards Minecraft and The Elder Scrolls.
Xbox studio consolidation is still unconfirmed
The new report does not say whether the additional consolidation would affect the studios named in July’s memo, other teams, or corporate functions around them. Recent reporting and industry discussion have pointed to possible changes at Blizzard and Halo Studios, but those developments should not be treated as confirmed parts of this round without an announcement.
The immediate question is therefore narrower than whether Xbox is restructuring — it clearly is. It is which teams will be folded together, how many roles will go, and whether the move changes the status of any announced games. Microsoft has not publicly confirmed the September report at the time of writing.
For background, Xbox previously confirmed 3,200 job cuts and five studio exits, while earlier reporting described the wider reset.
What is confirmed about the new Xbox layoffs report?
The Information has reported that hundreds of Xbox jobs could be cut and several studios consolidated, but Microsoft has not confirmed the report or named the affected teams.
How does this differ from the July Xbox restructuring?
July’s plan was an official Microsoft announcement covering approximately 3,200 Xbox role reductions through FY27 and changes to five studios. The September report describes a possible additional round.
Could the reported changes cancel announced Xbox games?
There is no confirmation that any announced game is being cancelled. Microsoft’s July memo said its publicly announced first-party projects were not being cancelled as part of that restructuring; the September report has not supplied a new project list.
