Xbox May Face Three More Layoff Rounds, Starting This Month
WHO:
Screen Rant - Xbox is reportedly planning additional waves of layoffs.
Eurogamer.net - The plans concern Microsoft’s gaming division, led by CEO Asha Sharma.
Eurogamer.net - The Coalition, the Canadian studio behind *Gears of War: E-Day*, is identified as a studio whose staffing could be affected; the article does not say it is specifically targeted.
Eurogamer.net - The report’s sources are described as “people familiar with the plans,” who spoke to Fortune Magazine.
WHAT:
Eurogamer.net - Members of The Coalition’s development team said they were worried that Xbox could reduce staff at the studio after *Gears of War: E-Day* shipped; some also feared layoffs could be timed to prevent affected employees from receiving promised bonuses.
Screen Rant - Several further waves of Xbox layoffs are reportedly planned.
Eurogamer.net - Xbox is reportedly planning three more rounds of layoffs.
Eurogamer.net - A prior round eliminated 268 roles and included organizational changes that moved Obsidian under Bethesda and placed Rare and World’s Edge with Activision.
Eurogamer.net - The first major cost-cutting wave involved more than 1,600 job cuts; another 1,600 cuts are planned across future quarters.
Eurogamer.net - The report did not identify which teams would be affected by the planned cuts.
Eurogamer.net - Xbox internally estimates next-generation Helix consoles will cost between $1,200 and $1,800.
Eurogamer.net - *Gears of War: E-Day* was released; the article says its sales appear softer than anticipated.
WHEN:
Eurogamer.net - The three reported layoff rounds are planned for this month, November, and January 2027; the sources cautioned that plans could change.
Eurogamer.net - The remaining 1,600 planned cuts are expected to be distributed across future quarters, culminating in the early months of 2027.
WHY:
Eurogamer.net - The layoffs are part of Xbox’s broader plan to cut costs and return the division to profitability, described as CEO Asha Sharma’s plan to reset the business.
HOW:
Eurogamer.net - The report says the planned cuts are to be carried out in three rounds, with the remaining job reductions spread across future quarters.
(UPDATED October 21, 2026 18:12 UTC)
Xbox is reportedly planning three more rounds of layoffs as Microsoft’s gaming division seeks to cut costs and return to profitability. The cuts are expected this month, in November, and in January 2027, though people familiar with the plans cautioned they could change. More than 1,600 jobs were cut in an earlier major round, and another 1,600 reductions are expected across future quarters, through early 2027. A separate round eliminated 268 roles and reorganized several studios, but the report did not identify which teams will face future cuts. The Coalition, the studio making *Gears of War: E-Day*, is among those whose staffing could be affected. Team members reportedly fear cuts after the game ships, and some worry layoffs could keep employees from receiving promised bonuses. Xbox also reportedly estimates its next-generation Helix consoles could cost between $1,200 and $1,800.
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(UPDATED October 21, 2026 17:26 UTC)
Microsoft’s gaming division is reportedly preparing three more rounds of layoffs, as CEO Asha Sharma seeks to cut costs and return Xbox to profitability. People familiar with the plans told Fortune that the rounds are expected this month, November, and January 2027, though the timing could change. The report does not identify which teams will be affected. The Coalition, the Canadian studio behind *Gears of War: E-Day*, is among those whose staffing could be affected, but it was not named as a specific target. A previous round eliminated 268 roles and moved Obsidian under Bethesda, while Rare and World’s Edge were placed with Activision. Xbox has also made more than 1,600 cuts, with another 1,600 planned across future quarters, into early 2027. The division reportedly estimates its next-generation Helix consoles will cost between $1,200 and $1,800, while *Gears of War: E-Day* sales appear softer than anticipated.