New reports are making the rounds that Xbox is in active discussions to spin off several internal game studios to avoid shutting them down outright.

The new reports (Bloomberg, Verge) cite people familiar with Xbox’s plans, noting the publisher is looking to spin off Ninja Theory, Double Fine Productions, and Compulsion Games to avoid shutting the studios down outright as part of rumored incoming layoffs.

Veteran game developer Chris Avellone recently noted studios who were previously considered safe from layoffs are getting notified they may be at risk.

Ninja Theory, who just announced a new game, were reportedly told Microsoft was looking to shut them down – though they could get bought out.

The new rumors and reports of layoffs and closures come not long after Xbox CEO Asha Sharma posted a bold memo asking for an “Xbox reset,” which led to many expecting the company would announce more sweeping layoffs.

Microsoft’s CEO also recently talked up their Xbox division and emphasized that they must become sustainable with profit – and even joked content creators might be making more money off Xbox games than Xbox is itself.

Xbox Game Studios boss Craig Duncan also announced his resignation earlier today – though the decision was reportedly made before the layoffs were discussed internally.