Xbox reportedly planning hundreds more layoffs and studio consolidations this week

Xbox is reportedly preparing to cut hundreds more jobs this week and consolidate several of its game studios, according to The Information, citing someone briefed on Microsoft’s plans. Coverage from Gematsu and Video Games Chronicle (VGC) frames this as a second major staff reduction in 2026, after July’s Xbox Reset. In July, Xbox eliminated about 1,600 roles, divested five studios, and said another roughly 1,600 cuts would follow by the end of fiscal year 2027. The Information’s new reporting says several studios will be consolidated; specific studio names were not disclosed. VGC notes the report points toward mergers or movement across Xbox Game Studios, Bethesda, Activision, and Blizzard. Separately, Bloomberg’s Jason Schreier said on the 8-4 Play podcast that Blizzard layoffs are “imminent,” after the studio recently announced STARCRAFT, Diablo V, and World of Warcraft: Forever. Microsoft has not publicly confirmed the September report or named affected teams. Halo-to-Activision rumors circulating alongside the story remain unverified and are not part of The Information’s core claim. Sources: https://www.gematsu.com/2026/09/the-information-xbox-to-cut-hundreds-of-jobs-consolidate-game-studios https://www.videogameschronicle.com/news/xbox-will-reportedly-consolidate-several-studios-in-new-major-wave-of-layoffs/ Would another Xbox studio consolidation wave change how you follow the platform?