Xbox Reportedly Plans Three More Layoff Rounds Through January 2027

Xbox is reportedly planning three more rounds of job cuts, in October 2026, November 2026 and January 2027. Fortune reported the timeline on 20 October 2026, citing people familiar with the plans. Those people said the dates could change.

The timeline came out of a profile of Xbox chief executive Asha Sharma, who is leading what she has called a reset of the Xbox business. The cuts are part of that reset, which has been unfolding since the summer.

The first major wave came in July 2026, when Xbox eliminated more than 1,600 jobs. The Verge reported that Sharma had also announced planned layoffs affecting 3,200 staff over Microsoft's 2027 fiscal year, which runs from July 2026 to June 2027.

In September, Microsoft announced a round that eliminated 268 Xbox roles. Those cuts hit Halo Studios, other first-party studios (the studios Microsoft owns and publishes games from), and the management and central teams that support the division. The same reorganisation moved Obsidian under Bethesda and placed Rare and World's Edge under Activision. The Verge reported that Activision would take over Halo as part of the restructuring.

Eurogamer reports that the roughly 1,600 roles still to go are to be spread across future quarters through early 2027. That report also says Gears of War: E-Day, made by The Coalition, launched with sales reportedly softer than the company expected.

Hardware is part of the picture too. Eurogamer reports that Xbox is internally estimating its next-generation Helix consoles will cost between US$1,200 and US$1,800. A console's launch price is the figure most players see first, so that estimate will draw attention once the company sets a real number.

For the people at these studios, the calendar is the story. The reported dates fall within the next few months, and they are plans, not final decisions. Players will be watching for how the cuts affect the games and studios they follow, and for whether the timeline holds.