Xbox CEO is reportedly planning three more rounds of layoffs
Xbox CEO Asha Sharma is planning layoff rounds this month, November, and January, after a July reset affecting 3,200 staffers over Microsoft's 2027 fiscal year.
By Dillip Chowdary • Oct 20, 2026 • Source: The Verge
The source is short, so I’m distributing only its names, dates, and figures across the five sections and checking paragraph length before the final text.Xbox chief executive Asha Sharma is planning new rounds of layoffs for sometime this month, November, and January, according to The Verge's report dated Oct 20, 2026, at 7:06 PM UTC. Jay Peters wrote that Microsoft may lay off Xbox staff in those three periods, with the timing drawn from Fortune. In July, as part of an organizational "reset," Sharma announced planned layoffs affecting 3,200 staffers over Microsoft's 2027 fiscal year, including 1,600 cuts at that time.
This piece covers the three reported windows, the July and September cuts, and the studio moves, for Xbox employees and for readers following whether Xbox could be sold. In September, Microsoft laid off around 260 employees. Sharma has let Double Fine and Compulsion Games become independent again, while Senua developer Ninja Theory may close. Fortune also said Microsoft is planning a next-generation handheld in 2027 and Project Helix in 2028.
Xbox CEO is reportedly planning three more: the announcement
Fortune is the source of the newest schedule: Sharma is planning layoff rounds sometime this month, in November, and in January. Jay Peters published that account on Oct 20, 2026, at 7:06 PM UTC, and wrote that Microsoft may lay off Xbox staff in each of those periods. No separate headcount is given for any of the three. Peters, a senior reporter covering technology, gaming, and more, joined The Verge in 2019 after nearly two years at Techmeme. The illustration credit is Cath Virginia / The Verge.
July remains the larger plan those three periods follow. As part of an organizational "reset," Sharma announced planned layoffs affecting 3,200 staffers over the course of Microsoft's 2027 fiscal year, including 1,600 cuts at that time. The 1,600 is the share named in July. The 3,200 is the fiscal-year total she announced. The Oct 20, 2026 account places further rounds sometime this month, in November, and in January. The Verge files the item under "Xbox's 'reset': all the news about Microsoft's layoffs and studio changes."
What actually changed with Xbox CEO is reportedly planning three more
After the July reset, Microsoft laid off around 260 employees in September. The July announcement covered planned layoffs affecting 3,200 staffers over Microsoft's 2027 fiscal year, including 1,600 cuts at that time. Sharma's changes have also included letting Double Fine and Compulsion Games become independent again. Senua developer Ninja Theory may close. Jay Peters' Oct 20, 2026 account, published at 7:06 PM UTC, places those studio lines together with the layoff figures and draws the newest round timing from Fortune.
The reset series carries other studio news with its own bylines. On Sep 22, Richard Lawler reported that State of Decay developer Undead Labs announces layoffs as it goes independent. Tom Warren also reported on Sep 22 that Undead Labs has completed its separation from Xbox. On Oct 8, Jay Peters and Tom Warren reported that Xbox is launching a new film and TV division. Those items run in the series beside the layoff report Peters published on Oct 20, 2026.
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Who should care about Xbox CEO is reportedly planning three more
The published counts mark the groups already named. The July plan affects 3,200 staffers over Microsoft's 2027 fiscal year and included 1,600 cuts at that time. September accounted for around 260 employees. Fortune's additional rounds name Xbox staff sometime this month, in November, and in January. Sharma has let Double Fine and Compulsion Games become independent again. Ninja Theory, the Senua developer, may close. Undead Labs has announced layoffs as it goes independent and has completed its separation from Xbox.
Sale speculation has Althoff and Sharma on the record. The report touches on speculation that Xbox may be spun off or sold. Judson Althoff, the CEO of Microsoft's commercial business, seemed to downplay that idea to Fortune. "Asha is one of the best leaders we have at the whole company," Althoff said to Fortune. "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 told The New York Times that "Xbox is not for sale."
How to try Xbox CEO is reportedly planning three more
The Oct 20, 2026 report gives a calendar for the staffing plan: sometime this month, November, and January. Microsoft may lay off Xbox staff in those periods. Fortune is the source Peters cites for the three windows. Figures already stated are 3,200 staffers over Microsoft's 2027 fiscal year, including 1,600 cuts in the July announcement, and around 260 layoffs in September. The three upcoming rounds come without headcounts of their own. The account states no price and no version number for the plan.
Microsoft is planning to launch a "next-generation handheld device" in 2027 and its Project Helix console in 2028, Fortune said. Sharma has let Double Fine and Compulsion Games become independent again, and Senua developer Ninja Theory may close. On Sep 22, Richard Lawler reported that Undead Labs announces layoffs as it goes independent, and Tom Warren reported that the studio has completed its separation from Xbox. On Oct 8, Jay Peters and Tom Warren reported that Xbox is launching a new film and TV division.
What to watch after Xbox CEO is reportedly planning three more
Rounds still ahead in the Oct 20, 2026 report fall sometime this month, in November, and in January. Over that stretch, Senua developer Ninja Theory may close, and Sharma has let Double Fine and Compulsion Games become independent again. Undead Labs, the State of Decay developer, has announced layoffs as it goes independent, and Tom Warren has reported that its separation from Xbox is complete, in items dated Sep 22. The July announcement remains 3,200 staffers over Microsoft's 2027 fiscal year, including 1,600 cuts, with around 260 layoffs in September.
Althoff told Fortune, "We would not have put her on a business we intend to sell," on the speculation that Xbox may be spun off or sold. He added, "There's going to be a ton of speculation about all this. Time will tell," and he said, "Asha is one of the best leaders we have at the whole company." Sharma told The New York Times, "Xbox is not for sale." Fortune also put a next-generation handheld in 2027 and Project Helix in 2028.
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Xbox CEO is reportedly planning three more FAQ
When is Asha Sharma planning more Xbox layoffs?
Fortune's account, in The Verge's Oct 20, 2026 report, says Sharma is planning new rounds sometime this month, in November, and in January. Microsoft may lay off Xbox staff in those three periods. No headcount is given for each round.
How many people did the July Xbox reset cover?
In July, Sharma announced planned layoffs affecting 3,200 staffers over Microsoft's 2027 fiscal year, including 1,600 cuts at that time. In September, Microsoft laid off around 260 employees.
Is Xbox for sale?
The report notes speculation that Xbox may be spun off or sold. Sharma told The New York Times, "Xbox is not for sale." Judson Althoff, CEO of Microsoft's commercial business, told Fortune, "We would not have put her on a business we intend to sell."
What is happening to Ninja Theory, Double Fine, and Compulsion Games?
Sharma's changes include letting Double Fine and Compulsion Games become independent again. Senua developer Ninja Theory may close. The report gives no closure date and no headcount for Ninja Theory.
What hardware is Microsoft planning in the Xbox layoff report?
Fortune said Microsoft is planning to launch a next-generation handheld device in 2027 and its Project Helix console in 2028. No price and no month inside those years is included.
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Dillip Chowdary
Writes Tech Bytes coverage of AI, engineering, and the tools that actually ship. Editor of Tech Pulse Daily.
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