Xbox CEO is said to be preparing for additional rounds of layoffs.

Xbox CEO Asha Sharma is gearing up for additional layoffs this month, as well as in January, according to recent reports. Back in July, during a major organizational overhaul, Sharma revealed plans to cut 3,200 positions throughout Microsoft’s 2027 fiscal year, which included an initial reduction of 1,600 employees. In September, around 260 more staff were let go. As part of these changes, Sharma has also allowed Double Fine and Compulsion Games to regain their independence, although there are concerns about the future of Ninja Theory, the studio behind Senua’s Saga.

The report also hints at rumors regarding a potential spin-off or sale of Xbox, but Judson Althoff, CEO of Microsoft’s commercial division, seemed to dismiss these notions. He praised Sharma, stating, “Asha is one of the best leaders we have at the whole company. We would not have put her on a business we intend to sell. There’s going to be a ton of speculation about all this. Time will tell.” Sharma has also made it clear that “Xbox is not for sale.”

Additionally, the report mentioned that Microsoft is planning to unveil a “next-generation handheld device” in 2027, along with its Project Helix console set for release in 2028.