Microsoft is laying off hundreds of Xbox employees this week, according to a report from The Information.
The move represents the second major staff reduction for the gaming division in 2026.
The restructuring plan consolidates several video game studios to streamline operations and reduce costs.
These cuts follow a July 2026 overhaul that eliminated 3,200 positions under CEO Asha Sharma.
The earlier restructuring also included the divestment and spinning off of multiple game studios.