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Xbox Layoffs Ahead
Benzinga - News / VideoElephant
It was heavily rumoured and now, it's official - Xbox has confirmed thousands of jobs will be cut during the current financial year with four studios leaving for new management.
But, amid it all, there's something gamers are appreciating about the announcement.
Xbox CEO Asha Sharma sent an email to all employees, which has since been shared publicly, which said: "After careful consideration, I've made the difficult decision to reduce our team by approximately 3,200 throughout FY27.
"This will include approximately 1,600 role eliminations today (Monday 6 July) and in addition, four studios will leave Xbox to new management.
"I know this is painful. Our business today is not healthy. We must reset Xbox."
Compulsion Games and Double Fine Productions will transition to independent studios with Ninja Theory and Undead Labs entering terms to join new ownership. Arkane's management is starting consultation with its Works Council to review its options.
Sharma has been very open and honest with the position Xbox is in ever since she took over from Phil Spencer in February and gamers are appreciating that openness and working to spin off studios instead of shutting them down.
In the comments on a post by Sharma on X / Twitter, one said: "Good news effort was made to make sure studios were not closed and funding is still being given at least."
Another agreed: "Glad no studios were closed, really happy about that."
"Brutal, but at least a thorough and concise explanation of the restructuring," a third commented.
A fourth added: "I am glad at least none of the publicly announced games are getting cancelled and Compulsion and Double Fine are becoming independent instead of shutting down. I just hope you can revive Perfect Dark and bring it back to life. That game has so much potential."
And a fifth said: "As an Xbox guy, this hurts to read. 3,200 people is brutal. But the honest part is clear too: Xbox got too big, too layered and lost focus. I just hope the people affected land somewhere good and this reset actually protects the games."
Elsewhere from Indy100:
- Fallout game update from renowned insider amid XBOX's Obsidian uncertain future
- XBOX Project Helix may also ditch discs - but there's a physical copy plan
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