Microsoft announces major Xbox restructuring, cuts 3,200 jobs and divests studios
The Verge reported that Microsoft announced a restructuring of its Xbox division, planning to eliminate about 3,200 positions and transition four internal studios—Double Fine, Compulsion Games, Ninja Theory and Undead Labs—to new ownership. TechCrunch and The Seattle Times later detailed that the cuts are part of a company-wide reduction of roughly 4,800 jobs, representing 2. 1% of Microsoft’s global workforce, with the Xbox unit slated to lose around 1,600 roles; DW.
com noted that the Xbox portion could reach 3,200 positions and that the reductions would not be offset by AI-related hires. Subsequent reports from Digital Foundry, Ars Technica, Game File and Fox News described the rollout: 1,600 Xbox layoffs took effect immediately, four studios exited the Xbox brand, about half of id Software’s staff and a sizable share of Bethesda were laid off, 158 ZeniMax employees in Texas and 52 Obsidian workers in California were cut, and the company secured approval for 2,273 H-1B visas while facing public criticism.
