Fortune reported on October 20, 2026, that Xbox had further layoff rounds planned for October, November and January 2027, citing people familiar with Microsoft’s plans. The report said the schedule could change. The reported goal was to reach approximately 3,200 role eliminations by the end of Microsoft’s fiscal year in June 2027.
How the reported schedule fits the target
In July, Xbox CEO Asha Sharma announced an approximate target of 3,200 role eliminations during fiscal year 2027, including about 1,600 immediate cuts. On September 22, Xbox executive Matt Booty announced 268 more role eliminations.
Subtracting those figures from the approximate target gives an approximate remainder of 1,332 roles: 3,200 − 1,600 − 268. That is a calculation from rounded figures, not a separately announced headcount.
What Xbox said about the studios
Xbox’s September 22 update described different outcomes for five studios. Compulsion Games and Double Fine had returned to management as independent studios, while Undead Labs had transitioned to new ownership. Ninja Theory faced employee consultation over a proposed closure after two agreements fell through, and consultation with Arkane was still underway.
