Xbox workers stunned after jobs 'bloodbath'
The video game giant owned by Microsoft plans to let 3,200 workers go. Will it be a big reset or a system crash?
By BBC News
Microsoft has announced it will cut 3,200 jobs across its Xbox gaming division, marking the most significant restructuring in the unit’s 25-year history. The cuts, described by Xbox CEO Asha Sharma as a necessary “reset,” will see 1,600 employees lose their jobs immediately on Monday, July 6, 2026, with the remaining 1,600 phased out through fiscal year 2027.
This Xbox reduction is part of a wider Microsoft workforce cut of 4,800 roles, representing about 2.1% of the company’s global staff. Sharma stated in an internal memo that four Xbox studios will be divested to new management as part of the overhaul.
Union representatives, including the Communications Workers of America and the Bethesda Game Workers Union, expressed strong disappointment with the leadership’s decision, noting that hundreds of unionised workers were among those terminated. The Montreal office was specifically affected, with some unionised workers reportedly fired during brief three-minute calls.
Microsoft says the business is not healthy and requires a fundamental reset after years of heavy investment.