Xbox CEO Asha Sharma is reportedly scheduling additional layoffs for October, November, and January as part of an ongoing restructuring that already includes plans for 3,200 positions over Microsoft’s fiscal 2027 year. The July announcement included 1,600 immediate cuts, followed by roughly 260 more in September, with studio shifts such as Double Fine and Compulsion Games going independent while Ninja Theory faces potential closure. Fortune reported the upcoming windows without specifying headcount per round, noting the effort aims at improving margins after Sharma described the business as unhealthy in internal communications.

Judson Althoff, CEO of Microsoft’s commercial business, told Fortune that Sharma ranks among the company’s top leaders and that the placement signals no intent to sell Xbox, a point Sharma reinforced to The New York Times earlier this month. The changes coincide with longer-term hardware plans including a handheld device targeted for 2027 and Project Helix for 2028. Microsoft has not confirmed the new layoff schedule.

Employee sentiment remains mixed, with some citing transparency in the reset process while others describe ongoing uncertainty across teams. The pattern follows broader Microsoft moves that included divestitures and role consolidations earlier in the year. Further details on affected roles or total additional headcount remain unavailable from official channels at this time.