Rumors of Xbox Layoffs: Potential Job Cuts for Up to 2,000 Employees and Possible Studio Closures

Potential Xbox Layoffs on the Horizon

Recent reports from reputable sources such as Bloomberg and The Verge have highlighted the possibility of significant layoffs within Xbox, anticipated as part of a broader restructuring effort by Microsoft. As outlined by The Verge, certain Xbox operations may even be discontinued in specific regions.

Industry Insights on Workforce Reductions

In an intriguing development, George Broussard, co-founder of Apogee Software (currently known as 3D Realms) and a key figure behind the Duke Nukem franchise, recently shared insights suggesting that these layoffs could affect as many as 2, 000 employees. This figure represents roughly 10% of the workforce, particularly when considering the integration of Activision and Bethesda into the Xbox team. Given the precedent set in previous layoffs, it is likely that these subsidiaries will face cuts as well. Compounding these concerns are rumors of potential studio closures.

History of Microsoft Layoffs in Gaming

The first significant round of layoffs took place in January 2023, when Microsoft announced job cuts affecting about 10, 000 positions across all divisions, not limited to gaming. This affected development teams from Bethesda, The Coalition, and 343 Industries among others. Just a year later, in the wake of the Activision Blizzard acquisition, Microsoft executed another round of layoffs, impacting around 1, 900 employees between Xbox and ABK teams, which accounted for approximately 8% of their gaming workforce. This round also resulted in the cancellation of Project Odyssey, a survival game under development at Activision based on a new fantasy IP.

Recent Studio Closures

In May 2024, Microsoft announced the shutdown of several notable studios, including Arkane Austin (known for Prey and Redfall), Tango Gameworks (creators of The Evil Within, Ghostwire: Tokyo, and Hi-Fi Rush), Alpha Dog Games (known for The Mighty Doom), and Roundhouse Studios. Fortunately, Tango Gameworks was later acquired by KRAFTON, reviving its operations along with the Hi-Fi Rush franchise.

Anticipated Announcements

As Microsoft’s financial quarter concludes on June 30, stakeholders and industry watchers expect an official announcement regarding these layoffs and possible studio closures imminently, potentially by the end of this week. Stay tuned for more updates as they emerge.

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