Xbox fans, brace yourselves: According to multiple consistent insider reports (including Bloomberg, GeekWire, Windows Central), a new wave of layoffs is set to begin at Microsoft today, July 6, 2026 – right in the gaming sector. Thousands of positions in sales, consulting, and the Xbox division are said to be affected.
The background: Xbox Head Asha Sharma had already spoken plainly in early June in an internally circulated memo (“Next 100 Days: Xbox Reset“): Despite $20 billion in investments over five years, revenue has plummeted by nearly $500 million. The message was clear – things need to change.
And “things changing” apparently means: studio purges. Several Xbox-owned teams are on the chopping block, including Arkane Studios, Compulsion Games, and Undead Labs. Ninja Theory has already been hit – their closure was announced weeks ago, shortly after their new project “Senua“ was shown at the Xbox Games Showcase. A bitter pill.
Important: Microsoft itself has not officially confirmed any figures or the exact timing, so these remain insider reports, albeit consistently supported by several independent sources. We will stay on top of this and provide updates as soon as concrete confirmations emerge.
Source: GeekWire, Windows Central