Microsoft CEO says Xbox is simply 'streamlining' after cutting over 5,750 jobs in three years
The company has also divested or shuttered a number of key studios such as Double Fine, Compulsion, Tango Gameworks, and more in recent years.
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.
The company has also divested or shuttered a number of key studios such as Double Fine, Compulsion, Tango Gameworks, and more in recent years.
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.
Microsoft CEO says Xbox is simply 'streamlining' after cutting over 5,750 jobs in three years
The company has also divested or shuttered a number of key studios such as Double Fine, Compulsion, Tango Gameworks, and more in recent years.
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.
