The massive layoffs that hit Xbox Studios this summer as part of the division’s reorganization won’t be the last. According to rumors, Microsoft is already preparing for the next wave of layoffs.
Image source: Blizzard Entertainment
Let’s remember that in early July, Xbox parted ways with five game studios, laying off 1,600 employees and committing to further layoffs over the next 12 months (until July 2027) – a total of about 20% of its workforce.
According to the publication information According to people familiar with Xbox’s plans, the company’s second wave of layoffs in 2026 will occur this week and will affect “Hundreds of workers”.
Image source: Steam
According to The Information, Xbox is also looking to merge multiple studios. Authoritative Insider Nate the Hate (aka NateDrake) assertionas part of this plan, the Halo series will be brought under the Activision Blizzard umbrella.
Bloomberg reporter Jason Schreier Podcast 8-4 Play It was also reported last week that layoffs were imminent at Blizzard Entertainment, which recently announced StarCraft, Diablo V and World of Warcraft: Forever.
Image source: Blizzard Entertainment
Xbox’s restructuring in July was the initiative of new chief executive Asha Sharma, who acknowledged the business needed a reboot amid the unit’s poor performance.
In particular, Xbox has shifted investments to higher priority projects, including new games in its most successful franchises, including Fallout, The Elder Scrolls, Wolfenstein, Doom, Quake, and more.
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