Ars Technica
The incredible shrinking Xbox: Five studios, 3,200 employees let go
Monday, July 6, 2026
Xbox eliminated five studios and laid off approximately 3,200 employees, representing roughly 20 percent of its gaming division workforce. Microsoft, which owns Xbox, did not immediately provide details on which specific franchises would receive continued investment. The company stated the restructuring would allow it to focus on core gaming properties.
