Xbox warns of a ‘reset’ as it prepares for layoffs
Microsoft's Xbox division will be hit with significant layoffs next month, according to people familiar with Microsoft's plans. The company has been preparing for the layoffs internally for weeks, with Xbox CEO Asha Sharma hinting about "making hard choices" last…
By · June 10, 2026 · 1 min read
This article was originally published by
The Verge
and is republished here under license.
Microsoft’s Xbox division will be hit with significant layoffs next month, according to people familiar with Microsoft’s plans.
The company has been preparing for the layoffs internally for weeks, with Xbox CEO Asha Sharma hinting about “making hard choices” last month. Sources suggest the cuts could even involve a studio closure, or changes to the Xbox studio lineup. In a recent Giant Bomb episode, rumors of 1,000 layoffs for Microsoft’s Xbox division were mentioned. Bloomberg also reported today that the cuts would be “major,” and involve budget cuts for marketing and other areas of Microsoft’s Xbox business.
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