# Xbox set for second wave of cuts and studio consolidation

- URL: https://talkfuse.com/story/xbox-to-reportedly-cut-hundreds-of-jobs-and-consolidate-several-studios-in-next-wave-of-layoffs/
- Published: 2026-09-22T14:40:19+00:00
- Updated: 2026-09-22T21:34:35+00:00
- Original publisher: Nintendo Life
- Original article: https://www.nintendolife.com/news/2026/09/xbox-to-reportedly-cut-hundreds-of-jobs-and-consolidate-several-studios-in-next-wave-of-layoffs
- Topics: Business, Entertainment, Gaming

## Key points

- Hundreds more Xbox jobs at risk in second wave of redundancies following July cuts
- Studios set for consolidation across major gaming divisions
- Specific impacts and timeline remain unconfirmed by Microsoft

## Summary

Microsoft is conducting a second wave of significant redundancies at its Xbox division, with reports indicating hundreds of jobs will be eliminated alongside plans to consolidate several studios across its gaming operations. This restructuring continues Microsoft's broader reset of its gaming division, representing substantial implications for the affected workforce and the industry's competitive landscape.

These forthcoming cuts follow an initial round of layoffs in July that affected over 3,000 positions across the gaming division, with approximately 1,600 positions confirmed eliminated at that time. The consolidation could involve mergers or reorganisation of studios within Xbox Game Studios, Bethesda, Activision, and Blizzard, though specific details remain unconfirmed. Earlier restructuring measures already resulted in some studios regaining independence—including Double Fine and Compulsion Games—whilst others such as id Software were directly affected. Despite these changes, Xbox continues to release titles on competing platforms, including recent Nintendo Switch releases from Blizzard and Mojang.

## Coverage

- [Nintendo Life: Xbox set for second wave of cuts and studio consolidation](https://www.nintendolife.com/news/2026/09/xbox-to-reportedly-cut-hundreds-of-jobs-and-consolidate-several-studios-in-next-wave-of-layoffs)
- [Eurogamer: Second wave of Xbox cuts reported to be happening this week, with "several" studios apparently facing consolidation](https://www.eurogamer.net/xbox-second-wave-cuts-layoffs-report)
- [Push Square: 'Hundreds' More Xbox Layoffs Reportedly on the Way, Studios to Be Consolidated](https://www.pushsquare.com/news/2026/09/hundreds-more-xbox-layoffs-reportedly-on-the-way-studios-to-be-consolidated)
- [Rock Paper Shotgun: Xbox reportedly set to lay off hundreds more staff and "consolidate" several game studios in second round of major cuts this year](https://www.rockpapershotgun.com/xbox-reportedly-set-to-lay-off-hundreds-more-staff-and-consolidate-several-game-studios-in-second-round-of-major-cuts-this-year)
- [GameSpot: Xbox’s Second Wave Of Planned Layoffs Is Reportedly Starting As Studios Face Major Restructuring](https://www.gamespot.com/articles/xbox-layoffs-are-starting-again-report/)
- [Eurogamer: Next major Halo game being developed by Activision, as Halo Studios all but closes as part of Microsoft's Xbox restructuring](https://www.eurogamer.net/next-halo-game-developer-call-of-duty-stuidio-xbox-restructuring)

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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.