Xbox is reportedly preparing to lay off hundreds of employees this week and consolidate several game studios. According to The Information, which cited someone briefed on the plans, this would mark the Microsoft-owned gaming division’s second major staff reduction of 2026.
The report adds fresh uncertainty for Xbox employees following a major restructuring announced in July.
In brief:
- Xbox reportedly plans to cut hundreds of jobs this week.
- Several game studios could be consolidated, according to the same report.
- The cuts would represent Xbox’s second major staff reduction this year.
- Microsoft has yet to publicly confirm the latest reported plans.
Xbox Layoffs Report Points to Another Round of Cuts
The Information’s report describes planned cuts, with the precise number of affected employees still unclear. The available coverage also leaves the identities of the studios facing consolidation unresolved.
That leaves employees waiting for details about which teams and roles could be affected. For players, the impact on upcoming releases remains an open question. The reported plans alone provide no basis to identify specific game cancellations or delays.
Microsoft had yet to publicly confirm the latest report at the time of writing, according to Tbreak’s coverage.
New Report Follows Xbox’s July Restructuring
The earlier round of reductions was substantial. In an August 19 statement, the Communications Workers of America said Microsoft announced 3,200 planned Xbox job reductions in July. The first phase was scheduled to affect 1,600 workers in early September, including hundreds of union members.
The union also reported coordinated demonstrations across the United States and Canada over the layoffs and workers’ demands for contracts.
How the newly reported cuts fit into that existing reduction plan remains unclear. Until Microsoft provides details, adding the reported hundreds to the earlier 3,200 figure would risk overstating the total.
