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Microsoft cuts 268 Xbox roles, reorganizes studios

Microsoft announced cuts and reorganizations as part of its Xbox reset plan, affecting 268 roles.

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Microsoft cuts 268 Xbox roles, reorganizes studios
XBOX Wire

Cuts and Reorganizations

Microsoft has announced a series of cuts and reorganizations as part of its Xbox reset plan. The company has eliminated 268 roles across various first-party studios and management functions.

The cuts are part of a broader restructuring effort that began in July. Since then, Microsoft has already completed studio divestitures and is continuing to explore other paths for some studios, including Ninja Theory.

The reorganization aims to strengthen Xbox franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing on publishing expertise.

Impact of Layoffs

The layoffs, which primarily affect the Xbox division, are expected to impact around 500 employees, including those in the cloud + AI unit. The cuts are in line with Microsoft's broader strategy to reduce its workforce and focus on key areas.

This marks the second major round of layoffs in the gaming division, following a July announcement where 4,800 employees were let go. The latest cuts bring the total number of layoffs since July to approximately 7,488 employees.

Microsoft's severance package includes up to 39 weeks' base pay for most US employees, with additional time based on seniority and tenure.

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