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Report: Xbox plans three more rounds of layoffs through January

According to Fortune, Xbox CEO Asha Sharma intends to cut jobs again in October, November and January. Microsoft has not confirmed the plans so far.

TWN newsroom1 min read
Symbolic image: Building 92 on Microsoft's campus in Redmond, Washington

Symbolic image · Photo: Coolcaesar / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)

More job cuts appear to be coming at Xbox. As business magazine Fortune reports in a profile of Xbox CEO Asha Sharma, three more rounds of layoffs are planned – later this month, in November and in January. The report does not say how many employees will be affected. Microsoft has not publicly confirmed the plans.

Sharma has led the gaming division since February 2026. In July she announced plans to cut 3,200 jobs in the current fiscal year; according to Fortune, 1,868 jobs have gone so far. In an internal memo Sharma described the business as unhealthy. Studios such as Double Fine and Compulsion Games have recently been allowed to become independent again.

According to Fortune, several current and former staff believe Xbox is being prepared for a possible sale, spin-off or outside investment. Microsoft had previously pushed back against such speculation.

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