Topic cluster

cost-cutting

2 sources grouped by AFBytes in Tech

AFBytes briefing

The moves affect employment in the U.S. gaming sector and signal continued pressure on technology company budgets after years of rapid hiring.

Key entities

  • Microsoft
  • Xbox

What to watch next

  • Watch for the next Xbox financial update or Microsoft earnings release to gauge whether gaming revenue stabilizes after the reductions.
  • Review the upcoming Microsoft earnings call for updated guidance on gaming revenue and further restructuring costs.
Tech theverge.com · Jul 6, 2026 13:52 UTC

Microsoft sells four Xbox studios amid gaming cuts

Microsoft is divesting four Xbox studios and moving two others to independent status. The actions form part of wider reductions inside the company's gaming division. Revenue pressure in the Xbox unit…

Tech cnbc.com · Jul 6, 2026 13:42 UTC

Microsoft cuts 4800 jobs including Xbox roles

Microsoft announced plans to eliminate 4800 positions across its commercial and gaming divisions. The Xbox unit is specifically downsizing and preparing to spin off four studios. Management cited dec…