- Microsoft plans to cut 3,200 jobs in Xbox during FY27, with 1,600 roles ending by the end of the year.
- Asha Sharma said that layoffs could affect more than 20% of Xbox employees by 2027, according to The Verge.
- Double Fine, Compulsion Games, Ninja Theory, Undead Labs and Arkane are among the studios affected by the cuts; for Arkane, layoffs are reportedly due to a dispute with Works Council that concerns the studio’s future.
Microsoft has reportedly planned large-scale job cuts at the Xbox division. According to material from Forbes and The Verge, the company plans to cut 3,200 Xbox jobs during FY27, with 1,600 roles ending by the end of the year.
In material published by The Verge, Xbox CEO Asha Sharma says that the layoffs will affect all parts of Xbox. The material also states that the company plans to cut at least 20% of Xbox jobs in 2027; the exact number of employees affected by the company’s layoffs remains undisclosed.
According to the report, the cuts are expected to affect multiple studios. Forbes writes that Double Fine and Compulsion Games may be laid off from their existing IP status, while Ninja Theory and Undead Labs — to be acquired into new ownership for the development of Senua and State of Decay 3.
As for Arkane, the material says that the studio is likely to be delayed. Forbes writes that Arkane’s layoffs are reportedly due to a dispute with a French court regarding the sale or closure. The Verge also states that Arkane is reportedly facing a dispute with the Works Council over the start of layoffs; the material also notes that the dispute is related to Blade and the studio’s work.
The Verge also reports that Microsoft is considering selling or shutting down Arkane, while the Blade project would be moved to another studio. Forbes, in turn, writes that no final decision has been made on the sale of the studio’s jobs and that the situation could change.
Meanwhile, The Verge reports that even Asha Sharma’s statement about the company’s plans is not clear. As for the text, it is unclear what is meant by the statement by Chief Operating Officer P&L, which is contained in the text, as well as the mention of platform and services, and what is also mentioned about the possible continuation of Helen Chiang.