Xbox is reportedly preparing for three additional rounds of layoffs, with the first set to begin this month, followed by another in November and a third in January 2027, according to a report citing individuals familiar with the plans. This follows two previous rounds in July and September 2026, which eliminated over 1,600 and 268 roles respectively, as part of CEO Asha Sharma's cost-cutting strategy.
The upcoming layoffs are part of a broader plan to reduce costs and return Xbox to profitability, with the final 1,600 cuts reportedly planned through early 2027, though plans could change. Concerns persist about potential impacts on studios like The Coalition, which developed Gears of War: E-Day, as staff fear timing of cuts may affect bonus eligibility, according to staff interviews.