THE CRUNCH

Xbox employees living within 50 commuting miles of Studio D in Puget Sound must work from the office at least four days a week from 1 February 2027, according to an internal memo seen by The Verge. Microsoft had required three days a week since last year, and the new rule applies only to staff near its Redmond, Washington campus.

Xbox chief people officer Jacinda Chislum Pearson framed the change as a response to employee feedback, writing that the company needs to "create more opportunities for people to work together". She argued that proximity makes it easier to review work, resolve issues and make decisions without scheduling another meeting.

The memo suggests "established in-office practices" at Xbox studios will stay unchanged, and staff with existing exemptions from Microsoft's return-to-office rules will need to resubmit them again. Pearson also warned leaders that commuting should not mean "spending the same day on Teams calls from a different building".

The timing is notable: the policy lands a day after a report suggested Microsoft plans further Xbox layoffs this month, plus more in November and January. Microsoft said in July it intends to cut around 20 percent of Xbox jobs by the end of its financial year in June 2027.

WHAT HAPPENS NEXT

Employees with existing return-to-office exemptions will need to resubmit them again, though the memo does not state a deadline for doing so.