Nothing closed as of yet, instead 2 studios going independent, 2 being sold, Arkane Lyon currently looking for a buyer to avoid closing, 1600 Xbox employees laid off (less than the January 2024 Xbox layoffs which were 1900), though there will be a later round of layoffs before the end of this fiscal year (June 2027) which could be up to the same size for 3200 total over a year
Microsoft is laying off 4800 employees today / 1600 Xbox employees impacted
— Wario64 (@Wario64) July 6, 2026
-Double Fine and Compulsion Games are going independent
-Microsoft selling Ninja Theory and Undead Labs
Full memo from Asha: https://t.co/1YMaLj9vBJ pic.twitter.com/5dG6lZZfta









