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Game Developer
The state of play after a truly torrid week for Xbox
This past week has been tumultuous for Xbox, which announced 3,200 job cuts leading to significant layoffs across its major studios, including renowned names like Double Fine and Ninja Theory. The news has raised concerns not only about the welfare of the employees but also about the future operational health of the Xbox division. Critics have highlighted a lack of compassion in how the layoffs were managed, with calls for union action surfacing in response to what has been seen as a dismal handling of a sensitive situation.
MonitorConfidence: HighImmediate horizonReputational risk: High
Published 10 Jul 2026, 12:33 UTC3 min read
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Summary
TL;DR
- Xbox announced a total of 3,200 layoffs this week.
- Key studios such as Double Fine and Ninja Theory faced cuts.
- Unions are mobilizing against perceived unfair treatment.
- Asha Sharma, Xbox CEO, admits the division has spread too thin.
- This marks the fifth significant round of layoffs for Xbox in three years.
Interesting facts
- The layoffs have sparked a backlash, with employees claiming 'psychological warfare'.
- Asha Sharma was appointed to a Federal Reserve task force just days after the layoffs.