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Microsoft Axes 3,200 Gaming Jobs and Spins Off Five Xbox Studios

Ars TechnicaยทTuesday, 7 July 2026
Microsoft Axes 3,200 Gaming Jobs and Spins Off Five Xbox Studios

Microsoft has cut around 3,200 employees from its gaming division and is spinning off five Xbox game studios to operate independently. The cuts affect roughly 20 percent of Xbox's workforce and are part of a broader plan to refocus on the company's biggest franchises. Studios including Double Fine and Compulsion Games will keep their game libraries after going independent.

Why It Matters

Indian game developers and the growing number of Indians working in global gaming companies are directly affected by one of the biggest restructurings in the industry's recent history.

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