Xbox is undergoing significant restructuring, which includes selling off several of its game studios and laying off a substantial number of employees. The exact number of studios being sold and employees being laid off is unclear, with reports ranging from 4 to 5 studios and between 1,600 and 4,800 job cuts. The layoffs are part of a broader restructuring effort by Microsoft, with some reports indicating that the move is related to the performance of the Xbox division.