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3,200 Jobs Cut to 'Reset' Xbox, Company Lays Off over a Thousand Employees in 1 Day

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Microsoft's game console division is tight in the face of major challenges – and is taking action.

According to reports, Xbox cuts about 3,200 jobs and separates from several studios. Developers react with shock and speak of a turning point.

Microsoft today runs the biggest cut in Xbox’s history. 3,200 workers lose their jobs, four video games studios change ownership, and the division’s CEO bluntly admits that the business “is not healthy.” Xbox CEO Asha Sharma published on July 6, 2026 a public memorandum confirming the layoffs. The total number affects employees of Activision, Bethesda/ZeniMax, Blizzard, King, Mojang and Xbox Game Studios. A thousand six hundred posts are elimina…

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Windows Central broke the news on Wednesday, July 8, 2026.
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