Fortune reported that 1,868 Xbox jobs had been cut toward a 3,200-position reduction target in a profile published October 20, 2026. The profile also described further rounds as planned for October, November and January, citing people familiar with the plans.
The reported cuts and schedule
Fortune said the schedule could change. Its account did not give a year for the planned January round.
Fortune also reported mixed reactions among employees: some appreciated Asha Sharma’s transparency, while staggered rounds left some staff demoralized and uncertain about their jobs.
Changes to Xbox’s strategy
Beyond staffing, the profile described a push toward major franchises, more frequent major releases, and investment in hardware and the player experience. It also reported that Xbox was considering a tiered, à-la-carte Game Pass structure, with options such as console-only games, cloud gaming and multiplayer. That was a reported plan, not a launched subscription change.
Corporate scenarios discussed
Fortune reported that internal discussions considered possible sale, spinoff, outside investment or subsidiary arrangements for Xbox. The profile described these as scenarios under discussion, not an approved transaction.
Microsoft executive Judson Althoff said Microsoft would not have appointed Sharma to a business it intended to sell. Sharma said Xbox would remain important to Microsoft for a long time.
