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Rumour: Microsoft prepares a brutal round of layoffs for Xbox

As much as 15% of the gaming division is reportedly at risk, which would likely mean that game studios will have to be shut down.
Jonas Mäki Editor Sweden Updated 22 April 2026

Update: Blind has since removed the post suggesting there is no credence to these reports.

So far, everything reported about Asha Sharma's early days as head of Xbox has been positive, showing a drive to rebuild trust in the brand, but perhaps there are more troubling developments on the horizon. GamingBolt highlights a rumour posted at Blind, which is reportedly an "anonymous forum for professionals," where a person claiming to be from Activision Blizzard asserts that massive layoffs are coming from Microsoft's gaming division.

Microsoft recently halted all new hires, which is a common practice ahead of layoffs, and apparently this involves a staggering 15% of the workforce. The information is completely unconfirmed, but if true, it represents a major setback and could even lead to studio closures.

This bitter pill is reportedly set to be announced either on May 6 or June 5 (we don't know if the source is American or from another part of the world, which affects how dates are written), and with that said, all we can do is wait and see - and hope it's all just a hoax.

Editor Sweden Jonas Mäki has written for Gamereactor since 2002, becoming an editor in 2007. He covers the video game industry across news, releases and the business side, with a particular interest in sales figures and where the industry is heading.
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