Asha Sharma's Xbox reset may bring 3 more layoff rounds, fresh job cuts

Things are getting tougher for employees at Microsoft's Xbox division. According to recent reports, the gaming giant is preparing for yet another round of layoffs. This comes as the company tries to fix its struggling gaming business and cut down on extra costs.According to a report by Fortune, Xbox CEO Asha Sharma is planning new job cuts that will happen in November and January. The exact number of people who will lose their jobs is not known yet. However, this adds to the growing fear among Xbox workers who have already seen thousands of their colleagues leave.Why is Xbox firing employees?Asha Sharma, who became the CEO of Xbox in February 2026, has been making big changes to save money. In an internal message to employees, she reportedly called the current Xbox business "unhealthy." She mentioned that old plans and investments did not bring the success the company was hoping for.To fix this, Microsoft is doing more than just cutting jobs. The company is reducing the money it spends on outside vendors and removing extra layers of management to make the business run simpler and faster. As part of this massive shake-up, Xbox is also changing how it handles its game studios. According to Fortune, studios like Double Fine Productions and Compulsion Games have been made independent again. On the other hand, there are talks that Ninja Theory, the studio behind the popular game Hellblade, might be shut down entirely.A bad year for Xbox workersThis upcoming round of layoffs is part of a very difficult year for Microsoft Gaming. In July 2026, Microsoft announced a massive plan to cut 3,200 jobs by the end of the 2027 financial year. About 1,600 people were let go immediately. Later, in September, another 260 employees lost their jobs. If we look at the last three years, Microsoft has cut a massive 5,750 jobs from its gaming division.Is Microsoft selling Xbox?Because of all these job cuts and studio closures, many people started guessing that Microsoft might want to sell its Xbox business completely. However, top bosses at Microsoft have strongly denied this.Judson Althoff, an executive at Microsoft, told Fortune that placing Sharma in charge proves they want to keep the business. “Asha is one of the best leaders we have at the whole company,” Althoff said. “We would not have put her on a business we intend to sell. There’s going to be a ton of speculation about all this. Time will tell.”Sharma herself also shut down these rumours. In a recent interview with The New York Times, she simply stated, “Xbox is not for sale."What is next for gamers?Even though the company is firing people and reorganising its studios, it is not giving up on making new consoles. Fortune reports that Xbox is secretly working on new hardware. The company is reportedly planning to launch a brand-new handheld gaming device in 2027. Following that, a next-generation home console, currently called "Project Helix", is expected to arrive in 2028.For now, Xbox employees are waiting nervously for official details about the upcoming job cuts, as Microsoft continues to heavily reshape its gaming future.- Ends