Microsoft cuts 4,800 jobs, slashing 20% of Xbox staff and reshaping gaming unit
Microsoft confirmed it will eliminate about 4,800 positions, roughly 2.1% of its total workforce, with the Xbox division bearing the brunt—about 20% of its staff. The cuts also involve shutting down or spinning off several studios, such as Double Fine and Ninja Theory, and have prompted concerns about ongoing projects like The Elder Scrolls Online. Company leaders said the moves aim to concentrate resources on established franchises and to streamline the gaming business amid broader corporate priorities, including heavy AI investment. Analysts note the restructuring could position Xbox for a more sustainable growth path by 2027, though the exact future of a potential Xbox spinoff remains under discussion.
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Sources
Microsoft is considering options for its Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary, the Information reported on Friday, citing three people with direct knowledge of the discussions.
Xbox layoffs mean that Elder Scrolls Online's roadmap is "shifting" just two days before Season One's release... the plan put in place for the MMO after the last roun…
After Xbox's cuts, The Elder Scrolls Online is left with half of its development team and is forced to recreate its seasonal ...
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