British game developer shaping narrative action since 2000
Microsoft has announced 4,800 job cuts, about 2.1% of its workforce, with Xbox accounting for roughly 3,200 reductions across fiscal 2027 and 1,600 roles eliminated immediately. Xbox will spin out or divest five studios, flatten management and refocus on major franchises as the company shifts resources toward AI and margin improvement.
Xbox is restructuring its internal studios in a bid to streamline decision-making. Halo Studios will be under Activision, Rare and World’s Edge join Activision, and Obsidian moves to Bethesda. Layoffs continue as Microsoft tightens management layers and focuses on flagship franchises.