According to a report by *The Information*, Xbox is set to lay off hundreds more employees and merge several of its owned studios this week. This marks another wave of job cuts under Asha Sharma, part of an effort to return this Microsoft business unit to profitability.
This follows an announcement made last July regarding the layoff of 1,600 employees, with plans for another 1,600 cuts before the end of 2026. Once again, staff across Xbox Game Studios, Bethesda, Activision, and Blizzard will be affected. The report did not specify which studios would be merged.
To date, Double Fine Productions and Compulsion Games have reverted to being independent studios and have been permitted to retain the intellectual property (IP) they created. Meanwhile, Undead Labs and Ninja Theory have been sold to third parties.
