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Verification
VERIFIEDConfidence: HIGH
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Fact-check summary

Fortune's report on three planned Xbox layoff rounds (October, November, January) is corroborated by The Verge, Rock Paper Shotgun, and multiple other outlets.

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Home/Gaming/Fortune: Xbox plans more layoffs in October, November and January
VERIFIEDBy Xavier Rivera·Wednesday, October 21, 2026 at 7:12 AM EDT·1 min read

Fortune: Xbox plans more layoffs in October, November and January

Fortune reports that Xbox has layoff rounds planned for October, November and January. CEO Asha Sharma has cut 1,868 people so far as part of plans to reduce headcount by 3,200 over the next year, and Fortune notes layoff plans can change.

Source:Fortune
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Fortune: Xbox plans more layoffs in October, November and January
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TL;DRAI · 60 sec read

Eurogamer: Xbox reportedly plans three more layoff rounds starting this month, following CEO Asha Sharma’s reset plan. The first is slated for October, another in November, and a third in January 2027. This marks the second wave after September cuts removed 268 roles. The moves are part of a larger cost-cutting effort aimed at returning the gaming division to profitability.

Xbox is preparing more layoffs in its gaming division, with layoff rounds planned for October, November and January, Fortune reports.

Timeline follows CEO's reset plan. According to people familiar with the plans who spoke to Fortune, the steps continue CEO Asha Sharma's effort to reset the business. Fortune notes that layoff plans can change.
The Coalition, developer of Gears of War: E-Day, stands out as one area of uncertainty.

Part of a larger cost-cutting effort. According to Fortune, Sharma has cut 1,868 people so far as part of plans to reduce headcount by 3,200 over the next year. Fortune reports she has also "consolidated studios" and "divested or reorganized smaller studios" as the division works to return to profitability.
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The report provides the first specific schedule for the remaining reductions. It offers no details on which teams or studios face the next cuts.
Xbox is internally estimating next-gen Helix consoles at between $1,200 and $1,800.

Studio concerns. Eurogamer reports staff at The Coalition fear layoffs soon after Gears of War: E-Day's Oct 6 launch, and worry that being cut before the end-of-October Metacritic bonus payout could cost them that bonus. Microsoft declined to comment.
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Sources: Fortune; additional reporting from Eurogamer.

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