Xbox has confirmed what it describes as the most significant restructure in the brand’s history, with around 3,200 roles set to be reduced across FY27 and approximately 1,600 affected immediately.
The restructure also includes major changes to Xbox’s studio portfolio, with Double Fine Productions and Compulsion Games set to return to independent operation, while Ninja Theory and Undead Labs move toward new ownership with funding attached to future projects.
In a message to Xbox employees, Asha Sharma said the business “is not healthy” and pointed to lower margins, a smaller install base, higher costs and slower-than-expected growth from Game Pass, multi-platform releases and the wider content portfolio.
This is not just a marketing reset. It is a major business correction, and one that comes with a serious human cost for the people affected.
Look out for our deeper dive into XBOX rest.
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