Layoffs to continue at Microsoft Xbox

Microsoft Xbox is preparing for more layoffs, with the first wave expected to happen soon, followed by additional cuts in November and January 2027, according to recent reports. The company had already announced 3,200 layoffs in June, with half of those employees already let go shortly after the announcement.

Restructuring includes studio transfers

In the past month, 268 employees were laid off as part of a larger restructuring plan. This includes moving the development of the Halo game series to Activision, along with the acquisition of Rare and World’s Edge. A recent Fortune article cited sources close to the situation, stating that the next round of layoffs is expected to occur before the end of October.

Changes create uncertainty and anxiety

The layoffs are not just about numbers but also involve major structural changes, including the loss of specialized skills and the merging of studios. These changes have created a tense atmosphere among employees, with many reporting increased anxiety and concerns about their mental health and work performance.

Unusual offer to laid-off employee

Fortune reported an unusual case where a recently laid-off employee was given the option to stay in the Xbox games division. However, the full impact on specific studios is still unclear, and more details are expected to emerge in the coming days.