Observed Signal · Sep 22, 2026 · Technical Release · Source: Mobilegamer.biz · Impact: 3/5 · Sentiment: Negative
Xbox cuts 268 jobs, King escapes major layoffs
Xbox has announced another round of layoffs, cutting 268 jobs across its first-party studios, XGS management, and central functions as part of its ongoing restructuring. King, the mobile gaming studio behind Candy Crush, has largely escaped these cuts and has seen its remit expanded to include Microsoft Casual Games, which produces evergreen titles like Solitaire and Minesweeper. The restructuring, first announced in July, brings Xbox three-quarters of the way through its planned changes. King and Mojang now report directly to Xbox boss Asha Sharma. The cuts primarily affect console and PC studios, with Activision overseeing Rare and World's Edge, Bethesda absorbing Obsidian, and Playground Games merging with Turn 10. Ninja Theory is likely to close, while Double Fine, Compulsion Games, and Undead Labs have been divested. King staff in Stockholm and Malmö are set to strike over a rejected collective bargaining agreement.
Major platform restructuring affecting numerous game studios, with implications for the gaming and advertising ecosystem.
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Key Takeaways & Evidence Grounding
- Xbox is cutting 268 jobs across first-party studios, XGS management, and central functions.
- King's remit is expanded to include Microsoft Casual Games.
- King and Mojang report directly to Xbox boss Asha Sharma.
- Ninja Theory is likely to close; Double Fine, Compulsion Games, and Undead Labs have been divested.
- King staff in Stockholm and Malmö plan to strike on September 25.
Connected Companies & Entities
3 Entities mapped“Xbox has announced the latest stage of its restructure which will see 268 jobs lost across first-party studios....”
“King seems to have dodged most of the cuts, and has expanded its remit to include Microsoft Casual Games....”
“The moves mean Activision will oversee Rare, World’s Edge and develop the next Halo game....”
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