Xbox is reportedly planning three more rounds of job cuts, in October, November and January 2027, as it works toward the 3,200 Xbox layoffs scheduled before the end of the fiscal year in March. The timeline comes from a Fortune report published alongside an interview with Xbox CEO Asha Sharma.
Fortune cites people familiar with the plans, who described Sharma’s schedule for the cuts. If the report is accurate, the remaining reductions will arrive almost monthly. That differs from July, when Xbox cut jobs in one large batch.
Where the 3,200 job cuts stand
Microsoft announced the 3,200-job target earlier this year, covering its 2027 fiscal year. The plan follows near-yearly layoffs at the company since it completed its acquisition of Activision Blizzard King at the end of 2023.
The restructuring also saw Xbox separate from three studios: Compulsion Games, Undead Labs and Double Fine. Meanwhile, Ninja Theory is at risk of closing after a deal fell through.
So far, 1,600 employees lost their jobs in July. A further 268 followed in September, including staff at Halo Studios, and the Halo franchise has since moved to Activision. As a result, roughly 1,330 positions are still due to go if the 3,200 total holds.
Staggered Xbox layoffs weigh on staff
According to Fortune, the decision to spread the Xbox layoffs across several waves has left employees demoralized. Staff now face months of uncertainty over whether their role will be next, with the final round not expected until January.
Concerns are also surfacing at individual studios. Days after The Coalition laid off Gears of War: E-Day story director Juan Vaca, reports emerged that staff at the studio fear post-launch cuts. Those same reports claim Microsoft is withholding bonus payments.
Project Helix pricing and Game Pass changes
The Fortune report also covers Xbox hardware. Microsoft’s internal projections for its next-generation console, Project Helix, reportedly put its price between $1,200 and $1,800. Fortune adds that the console is on track to launch by Christmas 2028.
In addition, an overhaul of Xbox Game Pass is on the way, according to the same report. Under the changes, Microsoft could sell certain features, such as multiplayer and cloud gaming, “à la carte.”
Layoffs across the games industry
Xbox is not the only major company cutting staff. Sony has shut down studios including Bluepoint Games. EA, for its part, laid off workers at Battlefield Studios even though the latest Battlefield release was considered a success.
GamesRadar+ points to several pressures behind the cuts, including rising game budgets and executive bonuses. Expectations that the spike in consumer spending during the COVID-19 era would last have also not held up. On top of that, US tariffs and AI demand are pushing up component costs.
Since taking over, Sharma has acknowledged that Xbox faces the same problems as the rest of the industry. Under the current plan, the remaining Xbox layoffs are due to be complete by the end of March 2027.