Xbox Set for Major Workforce Reductions Amid Studio Consolidation

WHO:

Techmeme - Xbox, a brand under Microsoft, is involved in the layoffs and studio consolidations.

WHAT:

Techmeme - Xbox plans to lay off hundreds of employees this week.

Techmeme - This is the second major staff reduction for Xbox in 2026.

Screen Rant - Xbox has already laid off employees and divested some studios earlier in the year.

WHEN:

Techmeme - The layoffs are expected to occur this week.

WHY:

Techmeme - The layoffs are part of a plan to consolidate several of Xbox's game studios.

HOW:

Techmeme - The layoffs and consolidations are being executed as part of a broader restructuring strategy within Xbox.

(UPDATED September 22, 2026 14:02 UTC)

Xbox, a brand under Microsoft, is set to lay off hundreds of employees this week as part of a broader restructuring strategy. This marks the second major staff reduction for Xbox in 2026, following earlier layoffs and studio divestments earlier in the year. The layoffs are part of a plan to consolidate several of Xbox's game studios.