Xbox Plans 3 More Layoff Rounds
Asha Sharma to cut 3,200 staff by 2027 as Xbox resets business and considers Game Pass overhaul
Xbox CEO Asha Sharma is reportedly planning three more rounds of layoffs, with the first taking place in October, followed by another in November and one in January 2027. This is part of her efforts to reset the business and cut costs, with a total of 3,200 staff to be cut over the course of Microsoft's 2027 fiscal year.
The first wave of layoffs occurred in July, with 1,600 job cuts announced as part of an organizational 'reset'. This was followed by another round in September, which saw around 260 employees laid off. The remaining 1,600 layoffs will be distributed across future quarters, culminating in the early months of 2027.
The layoffs are part of a larger plan to reduce costs and return the division to profitability. Xbox is also considering an overhaul of its Game Pass service, which could include a tiered structure and the ability for players to choose features à la carte.
Asha Sharma has said she plans to 'evolve Game Pass into a more flexible system', and the changes could include things like cloud gaming, multiplayer, and add-ons for console-only games. The report of the Game Pass overhaul follows on from another rumor in September that claimed Microsoft would offer tiers of the service with or without ads.
## What's Next The fate of certain studios, such as The Coalition, which developed the recently released Gears of War: E-Day, remains uncertain. The studio's development team has expressed worry that Xbox will reduce staff now that their latest project has shipped.
## Why it Matters The layoffs and potential Game Pass overhaul are significant for Xbox, as the company attempts to reset its business and return to profitability. The changes could have a major impact on the gaming industry, and the future of Xbox's services and studios.
The next-gen Helix consoles are also expected to be a key part of Xbox's plans, with internal estimates suggesting they will cost between $1,200 and $1,800. As the company navigates this period of change, it remains to be seen how the layoffs and Game Pass overhaul will affect its position in the gaming market.
