Microsoft is reportedly preparing another round of Xbox layoffs today. According to a new report from The Verge’s Tom Warren, hundreds of employees could be affected as the company makes further changes to its gaming division. The cuts may also come alongside a reorganization of several Xbox studios.
Microsoft Reportedly Planning More Xbox Layoffs
The Verge’s Tom Warren reports that Microsoft is expected to announce a new wave of Xbox layoffs today, citing sources familiar with the company’s plans. While the exact number of affected employees has not been announced, the report says the cuts will impact hundreds of people.
Warren also reports that the layoffs are part of a larger plan to cut 3,200 Xbox jobs by the end of June 2027. This means today’s expected announcement may not be the last round of cuts. It should also be pointed out that this is a continuation of the layoffs that happened in July.
Meanwhile, The Information claims that Microsoft plans to consolidate several of its game studios. It is currently unclear which teams will be affected or exactly how the changes will work.
Xbox Has Already Cut Jobs and Restructured Studios
In July, Microsoft announced layoffs affecting around 1,600 people in its gaming division. The company also said four studios: Double Fine, Compulsion Games, Ninja Theory and Undead Labs, would leave Xbox under new ownership or return to independence.
Those changes were part of a wider restructuring, and the latest report suggests Microsoft is continuing to reshape its studio lineup. That said, we still don’t know which teams will be affected by today’s reported layoffs or consolidation plans.
However, a popular gaming insider might have already leaked one of the major changes coming to one of Microsoft Xbox’ biggest franchises.
Insider Claims Halo Franchise Will Move Under Activision Blizzard
Gaming insider NateTheHate has also claimed that Xbox’s reorganization will involve moving parts of the company under different divisions. In a series of online posts, he said the Halo franchise would move under Activision Blizzard.
However, NateTheHate clarified that he was talking about the franchise, not Halo Studios itself. His claim does not mean that Activision or Blizzard developers are taking over the next Halo game. At the time of writing, this is still unclear.
Microsoft has not confirmed the reported Halo move or detailed which studios could be consolidated. For now, we’ll have to wait for the company’s expected announcement to learn how many Xbox employees are affected and what the reorganization means for its games.
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