Microsoft announced another round of layoffs hitting its Xbox division, with sources confirming that approximately 650 employees will be affected. The cuts are part of a broader restructuring effort following the Activision Blizzard acquisition.
Studios affected include Bethesda, ZeniMax Online, and several mobile teams from King. This marks the fourth significant reduction in the gaming division within 18 months.
What This Means for Upcoming Releases
Sources close to the matter indicate that several in-development titles may face delays as teams are restructured. However, Microsoft’s flagship 2026 releases including the next Halo and Forza titles are reportedly unaffected.
‘These decisions are difficult but necessary,’ said Phil Spencer in a leaked internal memo. ‘We’re focusing on building a sustainable business for the long term.’
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