Xbox Reportedly Lining Up Three More Rounds of Layoffs

Microsoft's Xbox division is reportedly preparing three more rounds of layoffs, and the first could land as early as this month. According to a new report, the cuts are part of CEO Asha Sharma's plan to reset the gaming business.

The report lays out a timeline that runs through the end of the year and into early 2027. After the October round, another wave is expected in November, with a final one planned for January 2027. Spreading the cuts over several months points to a longer restructuring rather than a single announcement.

Sharma's reset is the common thread. The layoffs are presented as one piece of a broader effort to change how the division operates, not as isolated budget moves. The details available so far do not say which studios or teams are most exposed, so the size of each round remains unclear.

For players and developers, the report adds to a difficult stretch for the industry, where repeated rounds of cuts have become familiar at large publishers. Until Microsoft confirms the timeline or comments on specifics, these plans should be treated as reported rather than official.