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Xbox Is Bracing for Major Layoffs and Possibly a Studio Closure

The VergeยทThursday, 11 June 2026

Microsoft's Xbox division is preparing for significant layoffs next month, according to sources familiar with the plans. Xbox CEO Asha Sharma had already hinted at making hard choices last month. Sources suggest the cuts could include a studio closure or other structural changes.

Why It Matters

Xbox is one of the biggest names in gaming globally. Layoffs and studio closures directly affect the games being made and could mean some projects get cancelled.

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