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

> **Newsylist Open Intelligence Dossier** · First detected: 2026-07-07 13:29 UTC · Category: Business · Sources: 4 · Current Velocity: 2

## Executive Summary
Microsoft is executing massive workforce reductions at Xbox, including phased layoffs and the departure of four studios.

## Intelligence Brief
Microsoft is cutting approximately 4,800 jobs, with significant reductions targeting Xbox. According to coverage from Digital Foundry, 1,600 positions are being cut immediately, with another 1,600 slated for removal through 2028.


Four studios are leaving the company as part of these changes. Reporting from CNN and Business Insider emphasizes the scale of the cuts and the severance packages being offered to affected employees.


Game Developer reports that roughly half of the id Software team has been laid off, a move Digital Foundry describes as the studio being gutted. Future developments involve the rollout of the remaining 1,600 layoffs planned into 2028 and the finalization of severance terms for those impacted.

## Verified Facts & Key Claims
### How many total jobs is Microsoft cutting?
According to CNN, Microsoft is axing about 4,800 jobs.

### What is the timeline for the Xbox layoffs?
Digital Foundry reports 1,600 layoffs are happening now, with 1,600 more occurring into 2028.

### Which specific studio was heavily impacted?
Game Developer reports that roughly half of the id Software team has been laid off.

## Key People, Organizations & Locations
Microsoft, Software, Xbox Layoffs Announced, Four Studios Leave, Software Reportedly Gutted, Report Roughly

## Multi-Source Evidence Table
| Source Outlet | Headline | Published (UTC) | Verification URL |
|---|---|---|---|
| Business Insider | Here's what Microsoft is offering laid-off employees in severance | 2026-07-07 10:40 | [Source Link](https://news.google.com/rss/articles/CBMihAFBVV95cUxQUDBGNWMtNXRyUWxfY1UyRFIxU2hsNnpSWHhZeGlFT0hETWUycWhJVURSWGozb1JlRlhqaTloOFgyOUxETFI4VnNpVG5rZkxhZHZLUFc5Y0NaUnduTFNDTGxRUFBxR2M5dWxtX3I1d3c0TFl3ZEJaLXJBa1lGMFRyb2g5V1Y?oc=5) |
| CNN | Microsoft axes about 4,800 jobs, including major cuts to Xbox | 2026-07-07 10:40 | [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 | 2026-07-07 10:40 | [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 | 2026-07-07 10:40 | [Source Link](https://news.google.com/rss/articles/CBMi4gFBVV95cUxNSHJYOFRNV003MXdmQ1JacDc2enB6LURuS3FPWlJrbjNMbmZHYzE0cjRsSXJkZnF1Y3BxeWhhZDhMT3pyUUJwQ0Fab1NXdjZjZkxncUs1a2lNSjdfa3B3ZkM1aWVLcmxTR1EwejZ3a3BJay1MNXA5b2FRWmJ4NDN4VTNLWXJnV0FGbGIySlBneF9zNnRXZVZ2NDhWRi1zN0dicS1BUHIwTUhJZWxKZEx3c3lKQ3FSVDd4V0dRUG55NVJ5eGdMVHplb3d0Y3dxaFF6RE42WGZZMlV6bU50dkhsX0Z3?oc=5) |

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*Canonical Source: https://www.newsylist.com/trend/2026-07-07/xbox-layoffs-announced-1600-now-1600-more-into-2028-four-studios-leave-and-id*
*Synthesized by Newsylist Open Intelligence Engine under E-E-A-T journalistic standards.*