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Microsoft Xbox cuts 268 jobs amid ongoing reset

Microsoft Xbox has laid off 268 employees in its gaming division as part of a continuing restructuring, also shuffling studios and franchises. The company has faced persistent turmoil.

24 September 2026
Microsoft Xbox cuts 268 jobs amid ongoing reset

Microsoft's Xbox gaming division initiated further job cuts this week, eliminating 268 positions. The company also rearranged major studios and franchises as part of its ongoing "reset" for the Xbox brand.

Layoffs have become a recurring event for Xbox employees. Microsoft began significant workforce reductions in early 2024, cutting thousands of jobs, and these cuts have continued. Actions, including the closure of game studios, have reportedly impacted employee morale, according to current and former Xbox staff.

The latest restructuring efforts signal Xbox's attempt to refine its strategy and streamline operations amid intense competition in the gaming industry. These changes may influence future game releases and studio projects.

The situation reflects broader trends within the technology sector, where many large corporations are adjusting to shifting market dynamics and economic uncertainties. Xbox's continued reorganization points to efforts to solidify its standing in the highly competitive gaming landscape.

Original source: theverge.com