Xbox Layoffs Reportedly Not Done: Three More Rounds Could Hit Soon

Thought the Xbox layoffs were behind us? Apparently not. New rumors are swirling that Microsoft's gaming division is lining up three more rounds of job cuts, and the first one could land as soon as this month.

This follows the layoffs that hit Xbox's first-party studios back in September. According to anonymous sources who claim to be familiar with the situation, the cuts aren't stopping there. The report points to CEO Asha Sharma and company continuing to "reset" the brand, with more reductions reportedly on the way.

The framing here is pretty blunt: the word going around is that layoffs will keep coming at Xbox until morale among investors and executives improves. That's a stark way to describe what's happening behind closed doors, and it says a lot about the pressure the division is under right now.

For context, this isn't happening in a vacuum. September's cuts already shook up the first-party studio side of Xbox, and now the suggestion is that more rounds are queued up rather than wrapped up. The report doesn't get into which teams or studios might be affected, and Microsoft hasn't confirmed anything publicly.

It's worth keeping your expectations in check here. This is early word from anonymous sources, not an official announcement, so the details are thin and the timeline could shift. We don't know exactly when the rounds would begin beyond "as soon as this month," and there's no word yet on how many people could be impacted.

Still, the story fits a pattern Xbox fans have been watching closely: a brand in the middle of a self-described reset, with leadership making hard calls while the community waits to see what the studio lineup looks like on the other side. If the report holds up, the next few weeks could bring more unwelcome headlines.

We'll be watching for any official word from Microsoft, and we'll update you as soon as something concrete lands. In the meantime, it's another tense moment for the people actually making the games.

What do you think about another round of cuts reportedly on the horizon? Are you worried about what it means for Xbox's upcoming lineup? Let us know in the comments.