Microsoft is selling off four Xbox studios as part of significant gaming cuts

Xbox CEO Asha Sharma at the Bloomberg Tech conference in June 2026. | Bloomberg via Getty Images Microsoft is laying off 4,800 employees today, and more than 30 percent of the job losses are in the company's Xbox division. The significant gaming cuts will affect nearly every part of Xbox and also involve four game studios being spun off to be run independently from Microsoft. Today's layoffs, which are being described as an Xbox "reset" moment, will impact around 1,600 Xbox employees, according