Xbox Layoffs: Three More Waves Reportedly Planned Through January

Ever wonder what it's like to work at Xbox right now? According to a new report, it's a lot of waiting for the other shoe to drop. Fortune reports that Xbox CEO Asha Sharma is planning three more waves of layoffs—this month, in November, and in January—as part of the company's plan to cut 3,200 jobs by the end of the fiscal year in March.

The cuts have been rolling out in stages. 1,600 people were laid off in July, followed by another 268 in September, including at Halo Studios, whose franchise has been moved to Activision. The new report says the remaining cuts will come near-monthly rather than in one big batch, which has reportedly left employees demoralized. After all, it effectively gives them a year of worrying about whether they'll be next.

It's not just the layoffs themselves that are causing stress. Days after Gears of War: E-Day story director Juan Vaca was laid off, reports emerged from The Coalition that the studio fears post-launch layoffs and that Microsoft is withholding bonus payments. That's a lot of uncertainty for teams trying to ship games.

And there's more going on behind the scenes. Fortune also reports that Microsoft's internal projections for the next-gen Xbox, codenamed Project Helix, indicate it could cost between $1,200 and $1,800, with the console reportedly set to launch by Christmas 2028. Alongside that, there's talk of an Xbox Game Pass overhaul that could sell certain features like multiplayer and cloud gaming à la carte.

Layoffs are becoming more commonplace across the industry as game budgets—and CEO bonuses—increase. Sony shut down studios like Bluepoint, and EA laid off workers from Battlefield Studios even after the game was considered a success. Optimism that the COVID-era spending spike would last hasn't helped either, nor does the impact of US tariffs and AI on component costs.

As Sharma has noted since taking over, Xbox is no stranger to the issues facing the industry. But whether her plan to right the ship works or goes too far remains to be seen. For now, employees and fans alike are left watching and waiting.

What do you think about these reported layoffs? Will you be picking up an Xbox in the future? Let us know in the comments.