Chris Kerr,
Senior Editor, News,GameDeveloper.com
September 28, 2026
schedule3 Min Read
Headshot and Xbox logo via Microsoft
Xbox has made five rounds of mass layoffs since acquiring Activision Blizzard for $68.7 billion October 2023—but it seems that Microsoft CEO Satya Nadella feels that’s simply all part of a natural “streamlining” process.
The latest cuts were confirmed in July 2026 and will result in 3,200 people being jettisoned from Xbox Game Studios by the end of the current fiscal year. That reduction includes the divestment of notable studios such as Compulsion Games, Double Fine, and Undead Labs. Others like Arkane and Ninja Theory are also facing the very real threat of closure.
In 2025, Microsoft made an undisclosed number of cuts across Xbox, targeting subsidiaries such as ZeniMax Online Studios and King. Prior to that, the company laid off 2,550 workers across two separate rounds of layoffs in January 2024 and September 2024. Arkane Austin, Tango Gameworks and Alpha Dog Games were also shuttered in May 2024, leading to additional job losses.
Related:GDC Side Quest – Exploring co-development opportunities with Sam Carlisle
The full scale of Microsoft’s post-merger reckoning remains unclear,
