Xbox CEO reportedly planning three more rounds of layoffs

The reported plans follow a July announcement in which Sharma, as part of an organisational "reset," said Microsoft would lay off 3,200 staff over the course of its 2027 fiscal year, including 1,600 cuts at that time. In September, Microsoft laid off around 260 employees.

The new rounds of layoffs are planned for sometime this month, in November and in January, according to the Fortune report.

Sharma's broader changes to the Xbox business have included letting Double Fine and Compulsion Games become independent again, while Senua's Saga developer Ninja Theory may close.

The report also touches on speculation that Xbox may be spun off or sold, though no confirmation of such a move has been reported.

The Verge's report characterises the layoff plans as an ongoing part of the shake-up Sharma has overseen since taking charge of the division, with the gaming unit facing repeated staffing reductions through the current fiscal year.

Analysis

Why This Matters

Thousands of Microsoft gaming staff face continued job losses, with three further rounds of cuts reportedly scheduled between now and January.
The potential closure of Ninja Theory and the return of Double Fine and Compulsion Games to independence signal a significant reshaping of Xbox's first-party studio line-up.
Speculation that Xbox could be spun off or sold raises questions about the long-term direction of one of the gaming industry's biggest platform holders.

Background

Xbox is Microsoft's gaming division, covering its console hardware, the Game Pass subscription service and a portfolio of first-party studios. The reported layoffs are part of an organisational "reset" announced by CEO Asha Sharma in July, which aimed to restructure the division across Microsoft's 2027 fiscal year. The moves follow a period of broader cost-cutting across the technology sector and within Microsoft's wider operations.

Key Perspectives

Xbox leadership: The layoffs are framed as part of an organisational "reset" intended to restructure the business, alongside changes such as letting Double Fine and Compulsion Games become independent again.

Affected staff and developers: The repeated rounds of cuts create ongoing uncertainty for employees, and the possible closure of Ninja Theory would remove a well-known first-party studio from the Xbox roster.

Critics and sceptics: The prospect of further layoffs, studio closure and talk of a potential spin-off or sale raises concerns about the stability and strategic direction of the gaming division under its current leadership.

What to Watch

Whether the three reported rounds of layoffs proceed this month, in November and in January as described.
The fate of Ninja Theory, which may close, and how the new independence of Double Fine and Compulsion Games plays out.
Any official statement from Microsoft on the speculation that Xbox could be spun off or sold.

Checked

10 claims in this story checked against 1 source: 6 supported.

Show each claim

SupportedXbox CEO Asha Sharma is reportedly planning three more rounds of layoffs.The Verge: “Xbox CEO is reportedly planning three more rounds of layoffs.”
SupportedThe reported rounds are planned for sometime this month, in November and in January, according to Fortune.The Verge: “Xbox CEO Asha Sharma is planning new rounds of layoffs for sometime this month, November, and January, according to Fortune .”
Partly supportedThe new plans add to an organisational reset that has already seen thousands of job cuts across Microsoft's gaming division.The Verge: “In July, as part of an organizational "reset," Sharma announced planned layoffs affecting 3,200 staffers over the course of Microsoft's 2027 fiscal year”
Partly supportedIn July, Sharma said Microsoft would lay off 3,200 staff over the course of its 2027 fiscal year.The Verge: “Sharma announced planned layoffs affecting 3,200 staffers over the course of Microsoft's 2027 fiscal year”
SupportedThe July plans included 1,600 cuts at that time.The Verge: “including 1,600 cuts at that time”
SupportedMicrosoft laid off around 260 employees in September.The Verge: “and in September, Microsoft laid off around 260 employees .”
SupportedDouble Fine and Compulsion Games became independent again.The Verge: “Sharma's changes have also included letting Double Fine and Compulsion Games become independent again”
SupportedNinja Theory may close.The Verge: “though Senua developer Ninja Theory may close.”
Not in the sourcesNo confirmation of an Xbox spin-off or sale has been reported.
Partly supportedThe Verge characterises the plans as part of a shake-up Sharma has overseen since taking charge, with staffing reductions continuing through the current fiscal year.The Verge: “Sharma's changes have also included letting Double Fine and Compulsion Games become independent again”