XBOX is undergoing its most significant restructure in company history. The company plans to reduce its team by approximately 3,200 employees through FY27. This includes 1,600 immediate role eliminations and four studios leaving XBOX. Compulsion Games, Double Fine, Ninja Theory, and Undead Labs are transitioning to new ownership or independence. The restructure aims to address unhealthy business margins and a weakened core business.
https://news.xbox.com/en-us/2026/07/06/resetting-xbox/