Story perspectives

Xbox Cuts 3,200 Jobs, 1,600 Laid Off Now

7/12/2026

Summary

Asha Sharma Cuts Jobs

Xbox CEO Asha Sharma announced Microsoft will cut 3,200 Xbox jobs, with 1,600 layoffs immediate.
The remaining cuts will occur before the current financial year ends.
The OneBGS union said the cuts affect over 440 positions across Bethesda, ZeniMax Online, id Software and corporate, including 50 Bethesda and over 200 ZeniMax Online layoffs.
Union leaders will demand preferential transfers, stronger severance, extended healthcare and recall rights through effects bargaining.

Summary

Bethesda Strikes

Bethesda strike began after the July 2026 layoffs, invoking the 2022 Microsoft–CWA neutrality pact.
OneBGS joined Communication Workers of America in 2024, becoming the third studio to unionize after OneBGS Montreal and ZeniMax.
Union leaders say Bethesda CEO Jill Braff’s email framing the cuts as a shift toward “robust franchises” tries to bypass the neutrality pact.
Analysts warn the growing ZeniMax union footprint could force Microsoft to rethink its gaming-development strategy.

Summary

Bethesda HR Deletes

HR forced Bethesda employees to delete online tributes to laid-off coworkers, sparking developer outrage.
Over 60% of Zenimax Online Studios’ staff were cut in the past year, crippling the Elder Scrolls Online team.
Xbox closed studios that produced hits such as Hi-Fi Rush and Prey, threatening its upcoming game slate.
The cuts also eliminated several accessibility leadership positions, halting progress on inclusive features.

History

Historical Context

Microsoft announced on 15 September 2014 that it would acquire Mojang, finalizing the deal on 6 November 2014 and placing the studio in Microsoft Studios (later Xbox Game Studios). The low-overhead integration became a model for later studio consolidations within the division. In July 2026 Mojang began reporting directly to Xbox head Asha Sharma as part of the division's restructuring.

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Asha Sharma Cuts Jobs

Xbox CEO Asha Sharma announced Microsoft will cut 3,200 Xbox jobs, with 1,600 layoffs immediate.
The remaining cuts will occur before the current financial year ends.
The OneBGS union said the cuts affect over 440 positions across Bethesda, ZeniMax Online, id Software and corporate, including 50 Bethesda and over 200 ZeniMax Online layoffs.
Union leaders will demand preferential transfers, stronger severance, extended healthcare and recall rights through effects bargaining.

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