Xbox Will Lay Off 3200 Workers And Cut Four Studios Loose

Major Xbox restructuring: 3,200 layoffs planned across FY27 (1,600 today). Double Fine and Compulsion to become independent with their IP; Undead Labs and Ninja Theory moving to new ownership; Arkane reviewing options. Cuts span Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and Xbox Game Studios, with no first‑party projects canceled. Follows prior Microsoft games layoffs and has driven increased union activity. Funding pulled from an IO Interactive project led to layoffs. Strategic shifts around Game Pass pricing, exclusives, and next‑gen ‘Project Helix’ continue. Significant implications for in‑house and contractor audio teams across affected studios.

Read More: https://aftermath.site/xbox-layoffs-july-2026/