Microsoft is cutting 268 more jobs at Xbox, and Hellblade studio Ninja Theory could be next to close.
Xbox chief content officer Matt Booty told staff in a memo that the company is eliminating 268 roles across Halo Studios, other first-party studios, and Xbox Game Studios' central management functions. The cuts follow a July round that hit 1,600 Xbox employees, which Xbox CEO Asha Sharma called "the most significant restructure in Xbox history." Both rounds are part of the 3,200 roles Microsoft previously said would be cut across its 2027 fiscal year, which runs through June 2027. Ninja Theory, the studio behind Hellblade, is among the first-party teams reportedly facing closure as part of the broader reset.
This is the second confirmed wave of Xbox layoffs in two months, with roughly 1,300 more cuts still to come before the fiscal year ends. That drip-feed approach, announcing a big number and then rolling it out in stages, keeps each individual headline smaller even as the running total climbs toward one of the largest layoff campaigns in recent gaming history.
Sharma called July's cuts the "most significant restructure in Xbox history." Two months and 268 more layoffs later, that restructure is clearly still in progress.