Microsoft is laying off 268 Xbox staffers and Ninja Theory may close

<figure> <img alt="Vector collage of the Xbox logo." data-caption="" data-portal-copyright="Image: The Verge" data-has-syndication-rights="1" src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/25485118/STK048_XBOX2__C.png?quality=90&#038;strip=all&#038;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">Microsoft is laying off around 260 Xbox employees today, as part of an ongoing "reset" of its gaming business. 1,600 Xbox employees were <a href="https://www.theverge.com/news/961546/xbox-layoffs-studio-sales-2026">impacted by layoffs in July</a>, with Xbox CEO Asha Sharma describing the cuts as "the most significant restructure in Xbox history." Today's layoffs are part of the 3,200 roles that were previously confirmed to be impacted over the course of Microsoft's 2027 financial year (which ends in June 2027).</p> <p class="wp-block-paragraph">"We are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer," says Xbox chief content officer Matt Booty <a href="https://news.xbox.com/en-us/2026/09/22/continuing-our-reset/">in a memo</a>. "The actions completed since …</p> <p><a href="https://www.theverge.com/news/998589/microsoft-xbox-layoffs-ninja-theory-closure">Read the full story at The Verge.</a></p>