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Xbox Announces 3,200 Layoffs for Fiscal Year 2027, Four Studios to be Released

Xbox CEO Asha Sharma announced significant layoffs affecting approximately 3,200 employees, with 1,600 layoffs occurring immediately. Four studios—Ninja Theory, Compulsion Games, Double Fine Productions, and Undead Labs—are being released. Sharma cited lower-than-comparable margins and industry hardware challenges as reasons for the restructuring, aiming to reset Xbox's business focus.

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Xbox Restructures, Studios Face Closure Amid Funding Shifts

Xbox is undergoing a significant restructuring, leading to funding cuts for external projects like IO Interactive's 'Project Fantasy'. Several internal studios, including Ninja Theory and Compulsion Games, are reportedly at risk of closure. This strategic shift aims to refocus investments on major franchises and secure exclusive content pipelines.

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