Xbox is reportedly set to enact a second wave of significant layoffs this week, with "several" of its studios facing consolidation. Hundreds of employees are expected to be impacted by these measures, according to a report from The Information.
This follows a major restructuring in July that resulted in approximately 1,600 job cuts. The current reported layoffs could represent the second phase of Xbox CEO Asha Sharma's plan to reset the company's gaming division and improve profitability. Sharma had previously indicated an intention to cut another 1,600 jobs within a year of the initial round of redundancies.
The July layoffs affected nearly all of Xbox's studio portfolio. Some studios, including Double Fine Productions and Compulsion Games, were able to buy back their independence. Others, like the developers behind State of Decay and Ninja Theory, were reportedly sold to new owners, while Arkane Lyon, the studio behind Dishonored, is currently undergoing consultation.
Sharma's strategy reportedly prioritizes major franchises such as The Elder Scrolls and Fallout. However, the previous cuts impacted key studios like Bethesda, Zenimax Online (developer of The Elder Scrolls Online), and id Software (maker of Doom and Quake). The reported impending layoffs are expected to further impact morale within the Xbox division, which was already reportedly low following the July restructuring.