Microsoft is cutting 268 jobs across its Xbox gaming operations as part of a broader restructuring that also involves studio closures and the sale of several gaming businesses.
The latest cuts are part of around 3,200 roles expected to be affected during Microsoft’s financial year ending July 2027. Earlier this year, Microsoft cut 1,600 Xbox jobs in what Xbox CEO Asha Sharma called “the most significant restructure in Xbox history.”
The company is also reportedly moving to sell 4 Xbox gaming studios. Double Fine and Compulsion Games have already become independent, while attempts to sell Ninja Theory have failed twice.
Microsoft is now beginning a consultation process that could lead to Ninja Theory’s closure unless another buyer is found. Activision is taking over the Halo franchise, along with Sea of Thieves and World’s Edge, the studio behind the Age of Empires title. The sale of Undead Labs is still moving forward.
“We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them,” Xbox chief content officer Matt Booty was quoted as saying.
“Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward,” Booty added.
The future of other titles, including Arkane and Blade, also remains uncertain. Consultations under French labour laws are still underway and are expected to continue through the end of the year.
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