Xbox braces for second wave of layoffs as restructuring tightens its focus

Microsoft's Xbox is reportedly preparing a second round of layoffs this week as part of a broader restructuring to consolidate studios, following July's plan to cut about 3,200 jobs (1,600 already laid off). The move comes after divesting some internal studios, with Compulsion Games and Double Fine going independent, Ninja Theory and Undead Labs being acquired, and Arkane Lyon in consultation. CEO Asha Sharma says the goal is to stop spreading resources too thin, streamline management, and return to growth by 2027 through a tighter, more focused organizational structure.