Xbox's Reported Layoffs Could Hit Blizzard Hard Almost Immediately

Earlier today, reports emerged that Xbox is planning to lay off hundreds of employees and consolidate several game studios, marking another major change for Microsoft’s gaming division. Now, the potential impact appears to be spreading across more of Xbox’s publishing groups, with Blizzard Entertainment emerging as one of the studios that could be affected.

Blizzard could face layoffs amid Xbox’s reported restructuring

The latest claims come from Bloomberg journalist Jason Schreier, who reportedly said during the 8-4 Play podcast that Blizzard layoffs are coming and are imminent. Neither Microsoft nor Blizzard has announced a new round of job cuts at the time of writing, so the exact scale and timing remain unclear.

The Blizzard report is notable because the studio sits within the broader Xbox organization alongside Xbox Game Studios, Bethesda and Activision. The Information’s report does not name the studios that are in the list of consolidation plans, but it seems the plans could involve mergers or movement between Xbox’s major publishing groups.

That makes Blizzard one of the more closely watched names as Microsoft prepares the next stage of its gaming restructuring. However, it would be premature to say that Blizzard is among the consolidation plans.

Schreier’s comments also arrived shortly after BlizzCon 2026, where Blizzard revealed several major projects, including Diablo V and a new StarCraft project. The timing makes the possibility of layoffs interesting.

More Xbox news could come this week

VGC journalist Andy Robinson has also warned that more Xbox news could be coming shortly. For now, Blizzard layoffs remain reported rather than officially confirmed, while the broader Xbox restructuring appears to be entering another phase.

If Microsoft does announce the cuts, we should watch out for affected studios and teams and how the consolidation changes Xbox’s already sprawling gaming organization.