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Microsoft layoffs and Xbox studio spin-offs 2026

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FIRST ENTRY JUL 06
JUL 06 · Day 1

Microsoft cuts 4,800 jobs and plans Xbox gaming studio spin-offs

Microsoft is eliminating 4,800 jobs, representing 2.1% of its workforce.

Half of the Xbox cuts are part of the 4,800 jobs eliminated Monday, and the other 1,600 will exit throughout fiscal year 2027.

Ninja Theory and Undead Labs have entered terms to join new ownership.

“Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves. Our customers are navigating this same shift, and they're counting on us to help them through it. We can't do that well unless we're doing it ourselves.”
AMY COLEMAN verbatim
Quote copied with attribution