Xbox reportedly planning three more rounds of layoffs

Xbox is planning three further rounds of layoffs, scheduled for this month, November and January 2027, as part of CEO Asha Sharma’s reset to cut costs and return the gaming division to profitability. The company has already executed a major wave in July that eliminated over 1,600 roles and a smaller September round that cut 268 positions; roughly 1,600 more job reductions are slated to be distributed across upcoming quarters and conclude in early 2027. Recent organizational moves already shifted Obsidian under Bethesda and reassigned Rare and World’s Edge to Activision, reflecting wider consolidation and cost‑saving measures. Internal planning also values next‑gen Helix consoles at $1,200-$1,800.

Specific team targets remain undisclosed, but there is acute concern at The Coalition after Gears of War: E‑Day shipped with softer‑than‑expected sales, and studio staff fear cuts could be timed to affect bonus payouts. With the first new wave imminent, affected employees and observers expect announcements imminently. The workforce reductions are being framed as the continuation of a multi‑phase restructuring aimed at returning the division to profitability while reshaping studio alignments and project priorities.