Microsoft’s latest round of cuts has pushed Xbox through a brutal shake-up, with roughly 4,000 roles slashed this week on top of the 650 and 1,900 jobs cut last year and early 2024—putting total Xbox losses at over 6,000 in under two years. These layoffs are part of Microsoft’s broader plan to trim 9,100 roles worldwide, with gaming bearing the heaviest hit.
The fallout has seen veteran Rare developer Gregg Mayles exit after Everwild’s cancellation, alongside the end of the Perfect Dark reboot and a shelved ZeniMax Online project. As Xbox reconfigures post-Activision Blizzard and Bethesda deals, it’s banking on next-gen hardware and AI tools to reshape the division—though the final form of the Xbox empire is still anyone’s guess.
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