Microsoft is preparing a second wave of layoffs within its Xbox division this year, affecting hundreds of employees. The restructuring involves multiple internal studios, including Bethesda, Activision, and Blizzard, with plans for team mergers and personnel reassignments.
This follows a major reduction in July, when the company cut 1,600 positions and announced plans to eliminate another 1,600 roles by the end of the fiscal year. Previous cuts impacted ZeniMax Online, which lost hundreds of staff, and id Software, which saw about 100 employees leave.
New Xbox CEO Asha Sharma is leading the restructuring to return the business to growth. As part of this strategy, Compulsion Games and Double Fine Productions have regained their independence. Ninja Theory and Undead Labs are also transitioning to new ownership under finalized terms.
