# Xbox’s Biggest Shakeup Yet: 3,200 Jobs Gone, Studios Set Free

URL: https://technosports.co.in/xboxs-biggest-shakeup-yet-3200-job/  
Published: 2026-07-06  
Updated: 2026-07-06  
Author: Reetam Bodhak

Just when gamers thought the layoff waves of the past few years were finally settling, Microsoft has dropped another bombshell. This time, it’s Xbox’s turn — and the numbers are staggering.

In what’s being called the **biggest restructuring in Xbox’s history**, Microsoft plans to cut around 3,200 jobs throughout FY27. The news came straight from the top, via an internal memo from Xbox CEO Asha Sharma that quickly leaked online.

## Why Is This Happening?

According to Sharma’s memo, Xbox has been struggling on multiple fronts — thin hardware margins, underwhelming console sales, and higher operating costs than rivals. Despite heavy investment in games, Game Pass, and multiplatform releases, revenue simply hasn’t matched expectations.

![xbox](https://technosports.co.in/wp-content/uploads/2026/07/xxbxb.jpg)

## What’s Changing at Xbox?

| Change | Details |
| --- | --- |
| Job Cuts | ~3,200 employees, throughout FY27 |
| Compulsion Games | Goes independent, keeps its IP |
| Double Fine Productions | Goes independent, keeps its IP |
| Ninja Theory | Ownership change; funded to finish *Senua* project |
| Undead Labs | Ownership change; funded to finish *State of Decay 3* |
| Arkane | Entering strategy consultation |
| Leadership | Helen Chiang named new COO |

## The Bigger Picture

Two of Xbox’s beloved studios — **Compulsion Games** (known for *We Happy Few*) and **Double Fine Productions** (the studio behind *Psychonauts*) — are being spun off to operate independently, though they’ll retain their intellectual property. Meanwhile, **Ninja Theory** and **Undead Labs** are heading toward new ownership structures, with funding secured to complete their current flagship projects.

Microsoft is also flattening its leadership layers, a move meant to speed up decision-making. Helen Chiang’s appointment as Chief Operating Officer signals a tighter, leaner Xbox going forward.

For context on how gaming restructuring cycles typically play out industry-wide, [Wikipedia’s overview of Xbox](https://en.wikipedia.org/wiki/Xbox) traces the brand’s journey from its 2001 launch to today’s crossroads moment.

For more gaming news and industry updates, check out [TechnoSports](https://technosports.co.in).

## FAQs

### **How many Xbox employees are losing their jobs?**

 Microsoft plans to cut approximately 3,200 Xbox positions throughout FY27, as confirmed by CEO Asha Sharma’s internal memo.

### **Which Xbox studios are becoming independent?**

 Compulsion Games and Double Fine Productions will operate independently while retaining ownership of their intellectual property.