Microsoft is reportedly preparing another major round of Xbox layoffs this week, with hundreds of jobs expected to be affected and several game studios potentially consolidated as part of the restructuring.

According to a new report from The Information, citing a person briefed on Microsoft’s plans, Xbox is preparing its second significant staff reduction of the year.

The report also claims Microsoft intends to consolidate several Xbox game studios, although exactly which teams will be affected and what those consolidations will involve remains unclear.

Microsoft has not officially announced the latest reported cuts.

Several Xbox Studios Could Be Consolidated

The Information doesn’t identify the studios potentially involved, leaving open the possibility of mergers or other restructuring across Microsoft’s extensive gaming organization.

Xbox currently operates publishing and development businesses across Xbox Game Studios, Bethesda, Activision and Blizzard, making the potential scope of the changes significant.

The reported cuts follow the major restructuring announced in July. Xbox CEO Asha Sharma told employees at the time that approximately 3,200 positions would be eliminated throughout Microsoft’s 2027 fiscal year, with around 1,600 roles cut during the initial wave.

That restructuring also resulted in several studios leaving Microsoft’s ownership.

Xbox Has Already Gone Through Major Changes

Compulsion Games and Double Fine Productions have returned to independent ownership, while Ninja Theory and Undead Labs entered agreements to move under new ownership.

The July cuts also affected Microsoft’s remaining studios, including hundreds of positions at ZeniMax Online Studios and significant reductions elsewhere across the Xbox organization.

At the time, Sharma described the changes as the most significant restructuring in Xbox history and said the company needed to simplify an organization that had become increasingly fragmented following years of expansion and acquisitions.

The new report suggests that process is far from finished.

Microsoft’s Xbox Restructuring Continues

Sharma took over Xbox earlier this year following the departure of longtime Xbox chief Phil Spencer. Her mandate includes improving revenue growth and profitability across Microsoft’s gaming business.

The Information reports that the latest restructuring is expected to include hundreds of additional layoffs this week, alongside the planned studio consolidation.

For now, however, the identities of the studios involved and the exact number of positions being eliminated remain unconfirmed.

Until Microsoft formally details the changes, reports of specific studio mergers or closures should be treated cautiously.