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Xbox Announces Major Layoffs and Studio Changes in Significant Overhaul

In a bold move, Microsoft is restructuring Xbox, resulting in thousands of job losses and the spin-off of several studios as part of a major reset.

Editorial Staff — 2026-07-09 — 1 MIN READ
Xbox Announces Major Layoffs and Studio Changes in Significant Overhaul

Microsoft has announced a significant overhaul of its Xbox division, leading to the elimination of thousands of jobs. This decision marks one of the largest restructurings in the company's history.

The changes are aimed at reshaping the future of Xbox, focusing on efficiency and innovation in a competitive gaming market. Several studios will also be spun off as part of this strategic shift.

This move reflects the company's response to evolving industry dynamics and the need to adapt to new challenges in the gaming landscape.