Microsoft Cuts 3,200 Xbox Jobs and Spins Off Four Game Studios in Largest Xbox Reset

Microsoft plans to cut around 3,200 jobs in the Xbox division by July 2027, with 1,600 layoffs happening immediately, according to a public memo from Xbox CEO Asha Sharma. The company also intends to spin off Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. Meanwhile, Arkane Lyon is in negotiations with its work council about its future.