Xbox warns of a ‘reset’ as it prepares for layoffs
The Verge·June 10, 2026
Microsoft's Xbox division is preparing for significant layoffs next month, with the company having internally prepared for the cuts over the past few weeks. Xbox CEO Asha Sharma had hinted at "making hard choices" last month, suggesting that the layoffs could be substantial. Sources indicate that the cuts may involve a studio closure or changes to the Xbox studio lineup, with rumors suggesting up to 1,000 layoffs and major budget cuts for marketing and other areas. The layoffs are expected to be part of a larger "reset" for the Xbox division, with major changes anticipated for the business.
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