By Josh Challies
Publication Date: 2026-09-23 08:33:00
Microsoft’s huge round of XBOX layoffs is set to fall short of the figure stated earlier this year, amid strategy changes that will see some employees moved to different studios.
Back in July, Microsoft announced plans to reduce its gaming workforce by around 3,200, but the latest reports indicate that figure won’t be hit.
XBOX Layoffs Won’t Hit 3,200 Figure
Windows Central’s Jez Corden states sources have indicated the total figure “will fall short of that previous estimate,” with Microsoft opting for restructuring and moving employees to other departments.
It’s added that one approach has been divestitures, including Double Fine and Compulsion returning to independent game studios, with Undead Labs, which is developing State of Decay 3, making a similar move.
While the 3,200 total figure will be reduced, it’s not evident how much, and total Microsoft layoffs in the gaming division this year are still set to be in the 1,000s.
The…
