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Xbox confirms 268 more layoffs, further studio closures, and Obsidian's shift to Bethesda as major restructuring continues

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Microsoft is pressing ahead with its restructuring of Xbox, confirming 268 additional layoffs across the organization as part of an ongoing reset announced in June 2024. Beyond workforce reductions, the company is consolidating some studios while shuttering others entirely. The changes represent a continuation of the broader organizational overhaul rather than a new initiative, with Obsidian Entertainment now operating under Bethesda's umbrella as part of the realignment.

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Xbox's sustained personnel and studio cuts signal Microsoft's aggressive pivot toward profitability and portfolio streamlining during a turbulent period for the division.

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XBOX’s “Reset” Continues With 268 More Layoffs And Major Studio Changes
Cgmagonline 2h ago

XBOX’s “Reset” Continues With 268 More Layoffs And Major Studio Changes

XBOX has announced the continuation of the June 2026 reset announcement, and will lay off 268 more individuals across its organization.

Xbox confirms 268 more layoffs, further studio closures, and Obsidian's shift to Bethesda as major restructuring continues
Eurogamer 2h ago

Xbox confirms 268 more layoffs, further studio closures, and Obsidian's shift to Bethesda as major restructuring continues

Following reports that further job cuts were imminent at Xbox , Microsoft has confirmed more sweeping changes as its major restructuring continues. As a result, some Xbox studios will combine, others are set for closure, and 268 more layoff…