Report: Xbox Set For 'Major' Job Cuts, Studio Closure Or 'Lineup Changes' Could Be Involved
Image: Pure Xbox

Last night, Jason Schreier over at Bloomberg published a report that outlined plans for more Xbox layoffs in the near future, said to be of the "major" kind and taking place in July 2026.

The report says that the "exact scale" of the layoffs isn't clear yet, but they're expected "shortly after the close of Microsoft’s fiscal year on June 30". We'll obviously keep an eye out for that news and let you know about it ASAP.

Schreier also mentions that "Xbox is planning to significantly slash budgets for marketing and some other areas of the business" - at least according to "people familiar with the company’s strategy" that he's spoken to.

"Xbox is also planning to significantly slash budgets for marketing and some other areas of the business, the people said."

In a follow-up article, The Verge mentioned that a studio closure or "changes to the Xbox studio lineup" could be involved in the cuts according to their own sources. No specifics have been provided about who this could impact.

Xbox boss Asha Sharma shared an internal memo on the Xbox Wire website yesterday (around the same time as these reports appeared online), admitting that the next 100 days will be about addressing various "realities". As part of it, she mentioned that Xbox's studio system has become "over extended" and the balance needs to be "reassessed".

"We expanded our studio system when we needed a pipeline of content to meet multiple strategies across subscription, streaming, and devices. In the process, we have found ourselves over extended as we executed on changing strategies in a landscape of more readily available content. We are the fortunate stewards of industry-defining franchises that have enormous potential and player demand, but we have not adequately funded them to compete and win. At the same time, as we saw this past weekend at Showcase, a reliable pipeline of first- and third-party exclusives and new IP are critical to our success. We need to reassess the balance between these and our investment priorities for the next 5 years."

It certainly sounds like some major changes are in the works, then — and we'll be sure to keep an eye on it and let you know when official details (if any) are announced at the end of the month or in July.

In the meantime, you can share your thoughts on these reports down in the comments below.

[source bloomberg.com, via theverge.com]