# Xbox Layoffs Announced: 1600 Now, 1600 More into 2028, Four Studios Leave and id Software Reportedly Gutted

> **Open Intelligence Dossier** · First detected: 2026-07-07 13:07 UTC · Category: Business

## Executive Summary
Microsoft announces a wide-reaching reduction in staff, impacting Xbox divisions and multiple internal studios through 2028.

## Intelligence Brief
Microsoft has initiated a reduction of approximately 4,800 jobs, with a specific focus on the Xbox division. The restructuring involves the departure of four studios and significant cuts to the staff at id Software, where reports indicate that roughly half of the team has been affected.


Coverage from CNN, Game Developer, and Digital Foundry confirms the timeline for the Xbox-specific layoffs. According to these outlets, 1,600 positions are being cut immediately, with an additional 1,600 roles to be phased out between now and 2028.


Future developments hinge on the completion of the planned staff reductions over the next two years. Information regarding the specific identities of the four affected studios or the long-term operational status of the remaining divisions remains unconfirmed by current reports.

## Multi-Source Evidence Table
| Source Outlet | Headline | Verification URL |
|---|---|---|
| Axios | Microsoft dashes game developer dreams | [Source Link](https://news.google.com/rss/articles/CBMibkFVX3lxTE9hamw4bGdkRWZsX29zdE5uLUs3a040Q3lja3puQmZ5aG5DWHdHeVhsYTNFUlJyUmgtSUhmTzZxN3FVdlVLejN5c3NaNFV0ZHhvZ0llUEdZU2dBV1pSbktwTEo1VVRFOGlUSnQyOHVn?oc=5) |
| GamesIndustry.biz | "We simply spread ourselves too thin" – Xbox's Asha Sharma on firm's restructuring plans | [Source Link](https://news.google.com/rss/articles/CBMisgFBVV95cUxNMk0zY09qbXNmUGRibzJmbFN4dFdFRXRXY01IOXlmNWZUSGJJTnVPdDhDSUc1cE54NXpJNnhIY2VVSDhvMVJRcGRmWmZ3bmMwdzJ0Y2Zndm5QTjVSVG00R0tXVGhvY0gyRWVETDlZeUZNVUwyWFRrM1JheG5TbWRlWVdTcnpKRWV4cTE0SDZKN1dnRHpBeUhsaTRNZ25nLWhGd0plSE96TkRGVXFQUmtlRThR?oc=5) |
| IGN | 'We Need to Change Course' — Bethesda Boss Tells Staff the Company Must Focus on 'Our Strongest Franchises' as Xbox Layoffs Hit Hard | [Source Link](https://news.google.com/rss/articles/CBMi6wFBVV95cUxORUlwQlpQamhjb1g2SEt5aVFuYTBQRFcwaUQ2NnJsOElyR05NSlQ1TmJobi1FZEVXTjBKd1I1dG1MYnNGZTluVmZhaGNRZXY4dnN5bURJRzMwN3drX0l4TnNsY0xVelVGZUJjX2FyMkRrT0hQSUFTazVSaFFoMVhKNGQtaHRqVFBFVFJhVS1VLWlHTGptUEZ1Q09IR2VtS2tvc0pSd1dITENNcjAxY011bi1kOV8xTThlVjc2WGNqMDNlT3dET25wWlhiWUsyZHo0VVVpdjNYNWNGcUt0WjgtQVZtREhqTXhkQ3M0?oc=5) |
| CNN | Microsoft axes about 4,800 jobs, including major cuts to Xbox | [Source Link](https://news.google.com/rss/articles/CBMiakFVX3lxTE9DQmJVOHNiTGQxNU1fODRRZWJXa21lZUtzOUFvQVBETU1iLWVlN2swaU5XTnNuZXl4MHowSWZsMTNIeHhvS1c2NUhXOU5Bd3dmSFgxSTkwQ0JLR0NqQnVUaXRVd3UycjI3T3c?oc=5) |
| Game Developer | Report: Roughly half of the id Software team have been laid off | [Source Link](https://news.google.com/rss/articles/CBMiogFBVV95cUxNTWdsVWZKblVyWlRoWXFheXFYUVJZZThDbFk2V1hUX0xxMFdWYTkyd3dKRl91VGhKa3daaTBmZTVNbFZSN0Q5dkxTelIxdzNYei1FT0hfRkdES2F3LUhNRDhCbzh2Z2NYSzFHM2JRaElGekVEVWpnT1F5YzF3TU93dnRTLTdJbjhONTdpVThrVXF4WDlMcWhud2lYUmhWRG9BdEE?oc=5) |
| Digital Foundry | Xbox Layoffs Announced: 1600 Now, 1600 More into 2028, Four Studios Leave and id Software Reportedly Gutted | [Source Link](https://news.google.com/rss/articles/CBMi4gFBVV95cUxNSHJYOFRNV003MXdmQ1JacDc2enB6LURuS3FPWlJrbjNMbmZHYzE0cjRsSXJkZnF1Y3BxeWhhZDhMT3pyUUJwQ0Fab1NXdjZjZkxncUs1a2lNSjdfa3B3ZkM1aWVLcmxTR1EwejZ3a3BJay1MNXA5b2FRWmJ4NDN4VTNLWXJnV0FGbGIySlBneF9zNnRXZVZ2NDhWRi1zN0dicS1BUHIwTUhJZWxKZEx3c3lKQ3FSVDd4V0dRUG55NVJ5eGdMVHplb3d0Y3dxaFF6RE42WGZZMlV6bU50dkhsX0Z3?oc=5) |

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*Canonical Source: https://pulse.byoviral.com/trend/2026-07-07/xbox-layoffs-announced-1600-now-1600-more-into-2028-four-studios-leave-and-id*