{"rewrite":{"id":"r_15b341a9e19a6b35964a152f","clusterId":"c_d97ff0cf5406fdd4db99a720","slug":"xbox-reset-reportedly-includes-largest-layoffs-in-division-history-four-studios-at-risk","model":"deepseek-v4-flash","headline":"Xbox Reset Reportedly Includes Largest-Ever Layoffs, Four Studios at Risk of Closure","summary":"Microsoft's Xbox division is reportedly planning the largest workforce reduction in its history, with up to 400 or more layoffs expected in early July, according to GamesBeat and other outlets citing insider sources. The restructuring, dubbed \"Xbox Reset\" by new CEO Asha Sharma, follows a June 10 internal memo reviewing business plans. Four studios are said to be at risk of closure if no buyers are found: Double Fine Productions, Undead Labs, Compulsion Games, and Ninja Theory. Undead Labs, developer of the delayed 'State of Decay 3,' was added to the list on June 30. The closures could eliminate approximately 435 jobs. Additional cuts are expected at Activision Blizzard and Bethesda. Bloomberg reported that Microsoft's \"accountability margin\" for Xbox has dropped to 3%, far below a 30% target. Microsoft workers affiliated with the Communications Workers of America held an online press conference criticizing the layoffs and calling for protections. A Microsoft spokesperson said the company respects workers' rights and will continue negotiating with the CWA. The division has not officially commented on studio closures.","whyItMatters":"The reported scale of cuts, targeting multiple acclaimed studios simultaneously, signals a deeper profitability crisis at Xbox than previous restructuring rounds, and has drawn organized labor pushback from workers within the company.","webCardHtml":"\u003cp\u003eBloomberg reporter Jason Schreier posted on Bluesky that Xbox is already ending contracts and cutting vendors. Assembly, the advertising agency that handles Xbox public relations, has conducted layoffs.\u003c/p\u003e\n\n\u003cp\u003eThe four studios at risk of closure employ roughly 435 people combined: Ninja Theory (135 employees, known for the Hellblade series), Undead Labs (110 employees, State of Decay), Double Fine Productions (100 employees, Kiln and Keeper), and Compulsion Games (90 employees, South of Midnight). Multiple studios, including Compulsion Games and Double Fine, are reportedly actively negotiating for independence to avoid closure.\u003c/p\u003e\n\n\u003cp\u003eMicrosoft workers affiliated with the Communications Workers of America held an online press conference criticizing management for prioritizing investment in AI to cut costs, degrading game quality, and taking away jobs. They pointed out the pay gap with management and presented union demands including advance notice of layoffs and a voluntary retirement system to reduce forced terminations.\u003c/p\u003e\n\n\u003cp\u003e\u0026#34;We are not asking for millions of dollars in salary,\u0026#34; the workers stated. \u0026#34;What employees are asking for are protections that allow us to focus on making great games. We want to avoid situations where new hires lose their jobs just a week later. We want Xbox to see layoffs as a failure of management and invest in the future of gaming-its employees-rather than unpopular technologies like AI that neither players nor employees want.\u0026#34;\u003c/p\u003e\n\n\u003cp\u003eA Microsoft spokesperson responded: \u0026#34;We respect the right of team members to speak up. We have a track record of signing multiple labor agreements with the CWA. We will continue to negotiate in good faith with the CWA toward an agreement across Xbox.\u0026#34;\u003c/p\u003e","blueskyPost":"Microsoft workers affiliated with the CWA held a press conference criticizing Xbox management for prioritizing AI investment over game quality and jobs, saying: 'We want Xbox to see layoffs as a failure of management.'","twitterPost":"Four Xbox studios-Ninja Theory, Double Fine, Undead Labs, Compulsion Games-face closure if no buyer is found, per GamesBeat. Undead Labs was added to the list on June 30.","threadsPost":null,"newsletterBlurb":"Microsoft's Xbox division is reportedly planning its largest-ever layoffs, with up to 400 jobs cut and four studios at risk of closure. Workers affiliated with the CWA have publicly criticized the restructuring, calling for protections and accusing management of prioritizing AI over game quality.","attributionJson":"[{\"source\":\"Automaton\",\"url\":\"https://automaton-media.com/articles/newsjp/20260630-452560/\",\"title\":\"XBOX Reset Reportedly Involves Largest-Ever Layoffs, 4 Studios at Risk of Closure, Including Developer of Troubled 'State of Decay 3'\"},{\"source\":\"Game Spark\",\"url\":\"http://www.gamespark.jp/article/2026/06/30/168607.html\",\"title\":\"Xbox-related studios may face massive layoffs in early July. Microsoft employees issue statement of criticism-affiliated with CWA\"},{\"source\":\"GameBusiness.jp\",\"url\":\"https://www.gamebusiness.jp/article/2026/07/01/27360.html\",\"title\":\"Xbox-related studios may face massive layoffs in early July. Microsoft employees issue statement of criticism-affiliated with Communications Workers of America\"}]","lintFlagsJson":null,"lintHits":0,"costUsd":0,"inputTokens":15211,"outputTokens":1244,"status":"published","repairAttempts":0,"nextRepairAt":null,"factsAttemptedAt":1782783897,"createdAt":"2026-06-30T01:35:58.000Z","publishedAt":"2026-06-30T01:39:50.000Z","updatedAt":"2026-06-30T01:39:50.000Z"},"cluster":{"id":"c_d97ff0cf5406fdd4db99a720","canonicalTitle":"「XBOXリセット」は過去最大規模のレイオフで“4スタジオが閉鎖危機”との報道、難航中の『State of Decay 3』開発元も対象か。業界に衝撃走る","representativeArticleId":"a_0f6bcf5696269663b677fa27","sourceCount":3,"writtenSourceCount":3,"writeAttempts":0,"isSolo":false,"entitiesJson":"{\"anime_titles\":[],\"manga_titles\":[],\"work_titles\":[\"State of Decay 3\"],\"studios\":[],\"people\":[],\"type\":\"news\",\"domain\":\"games\",\"is_roundup\":false}","contentType":"news","status":"written","firstSeenAt":"2026-06-30T00:59:26.000Z","lastSeenAt":"2026-07-01T02:00:03.000Z","updatedAt":"2026-07-01T02:20:44.000Z"},"attribution":[{"source":"Automaton","url":"https://automaton-media.com/articles/newsjp/20260630-452560/","title":"「XBOXリセット」は過去最大規模のレイオフで“4スタジオが閉鎖危機”との報道、難航中の『State of Decay 3』開発元も対象か。業界に衝撃走る"},{"source":"GameBusiness.jp","url":"https://www.gamebusiness.jp/article/2026/07/01/27360.html","title":"XBOX関連スタジオ、7月上旬に大規模レイオフか。マイクロソフト社員が非難の声明―全米通信労働組合に所属"},{"source":"Game Spark","url":"http://www.gamespark.jp/article/2026/06/30/168607.html","title":"XBOX関連スタジオ、7月上旬に大規模レイオフか。マイクロソフト社員が非難の声明―全米通信労働組合に所属"}],"entities":{"anime_titles":[],"manga_titles":[],"work_titles":["State of Decay 3"],"studios":[],"people":[],"type":"news","domain":"games","is_roundup":false},"keyFacts":["Microsoft's Xbox division is reportedly planning up to 400 or more layoffs in early July, the largest workforce reduction in its history.","Four studios are at risk of closure: Double Fine Productions, Undead Labs, Compulsion Games, and Ninja Theory, employing roughly 435 people combined.","Undead Labs, developer of the delayed 'State of Decay 3,' was added to the closure list on June 30.","Bloomberg reported that Microsoft's 'accountability margin' for Xbox has dropped to 3%, far below a 30% target.","Microsoft workers affiliated with the Communications Workers of America held an online press conference criticizing the layoffs and calling for protections."]}