Microsoft's Xbox Cuts 3,200 Jobs, Divests Five Studios
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- Microsoft's Xbox unit plans to cut 3,200 jobs over the next year, with 1,600 layoffs starting Monday, in a corporate 'reset'
- Xbox is divesting up to five studios including Ninja Theory, with Compulsion and Double Fine becoming independent and Undead Labs and Ninja Theory being sold
Why it matters: The 3,200 cuts and studio divestitures make Xbox the largest single layoff in gaming's 2026 contraction. Five studios including Ninja Theory leaving Xbox signals Microsoft is walking back its multi-platform and Game Pass strategy that the new leadership now concedes failed to deliver acceptable margins.
