# Nadella backs Xbox restructuring despite further redundancies and studio upheaval

- URL: https://talkfuse.com/story/microsoft-ceo-says-xboxs-streamlining-is-great-to-see-despite-cuts-and-layoffs/
- Published: 2026-09-27T03:07:46+00:00
- Updated: 2026-09-27T09:23:10+00:00
- Original publisher: Eurogamer
- Original article: https://www.eurogamer.net/satya-nadella-xbox-streamlining-great-to-see-layoffs
- Topics: Business, Companies, Entertainment, Gaming

## Key points

- Nadella praised Xbox’s restructuring despite further layoffs.
- A further 268 jobs were cut across the division.
- Xbox aims to return to growth next financial year.

## Summary

Microsoft CEO Satya Nadella has praised Xbox’s “streamlining” under CEO Asha Sharma, describing the restructuring as “great to see” despite continuing redundancies. He said he remained confident in Xbox’s games portfolio and its ambition to serve players across PCs and consoles, while targeting a return to growth in the next financial year.

The latest 268 layoffs reportedly coincided with the apparent closure of British studio Ninja Theory and major organisational changes across Xbox. These include Obsidian moving under Bethesda, Playground Games merging with Turn 10, Undead Labs becoming independent, and Rare, World’s Edge and Halo moving under Activision; they follow a July restructuring affecting 3,200 employees, including 1,600 immediate job losses.

## Coverage

- [Eurogamer: Nadella backs Xbox restructuring despite further redundancies and studio upheaval](https://www.eurogamer.net/satya-nadella-xbox-streamlining-great-to-see-layoffs)
- [IGN: Microsoft CEO Says 'Streamlining' at Xbox is 'Great to See' as Layoffs Affect Thousands](https://www.ign.com/articles/microsoft-ceo-says-streamlining-at-xbox-is-great-to-see-as-layoffs-affect-thousands)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.