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Xbox Forum Calls for End to 3,200 Layoffs

7/14/2026

Summary

Xbox Community Demands

Xbox Player Voice forum members demanded that Microsoft halt further layoffs.
They cited a recent cut of 3,200 workers and over 10,000 staff laid off in two years.
The post listed Double Fine, Undead Labs and Ninja Theory as closed or at risk.
The thread attracted more than 3,000 votes.
Microsoft announced it will cut thousands more employees within the next 12 months.

Summary

Compulsion Seeks Partnerships

Compulsion Games announced it will seek collaborations with other studios, offering talent behind South of Midnight, which earned a BAFTA, a Peabody and “Best Games of 2025” spots.
Xbox chief Asha Sharma said Microsoft will double-down on flagship franchises like Fallout, Elder Scrolls and Halo, sidelining smaller IPs.
Compulsion highlighted its artistry and technical expertise as assets for partner projects.
A cited review gave South of Midnight a 4/5 score.

Summary

Xbox Chief Layoffs

ZeniMax Studios cut 213 jobs in Cockeysville and ZeniMax Media cut 166 in Rockville, while Xbox chief Asha Sharma’s reset eliminated 1,600 employees immediately.
Bethesda president Jill Braff said the company is shifting from a studio-centric model to focus on its strongest franchises.
id Software cut 96 staff in Richardson, Texas, and 40 remote roles, returning to its 2016 Doom reboot headcount and saying it can still make great games.

Summary

Microsoft Stock Plunge

Microsoft’s stock fell 19-23% in 2026, erasing about USD1.2 trillion in market value.
The company earmarked a record-high USD190 billion for AI infrastructure in 2026.
Chip shortage prompted Xbox price hikes, causing a 33% drop in hardware revenue in the March quarter.
Gaming contributed 6.4% of March-quarter revenue but represented 33.3% of the 4,800 layoffs.
Xbox profit margins are three to ten times lower than those of comparable platform or publishing firms.

History

Historical Context

Microsoft’s latest Xbox cuts echo earlier workforce reductions. After slashing 5,800 jobs in 2009 during the Great Recession, the company cut 18,000 employees in 2014 and more than 1,900 gaming staff in January 2024. Today, Xbox chief Asha Sharma orders 1,600 immediate layoffs and Xbox studio cuts, continuing a pattern of periodic downsizing amid shifting AI and gaming strategies.

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Xbox Community Demands

Xbox Player Voice forum members demanded that Microsoft halt further layoffs.
They cited a recent cut of 3,200 workers and over 10,000 staff laid off in two years.
The post listed Double Fine, Undead Labs and Ninja Theory as closed or at risk.
The thread attracted more than 3,000 votes.
Microsoft announced it will cut thousands more employees within the next 12 months.

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