Layoffs
Ongoing coverage on Layoffs.
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"I don't know how anyone remaining at Xbox Studios can feel safe" - New report reveals environment of uncertainty and fear, and a "staggering" loss of institutional knowledge
A new report details an environment of fear and uncertainty within Microsoft's Xbox Studios following recent layoffs, with employees unsure of future cuts and the impact on game development. Studios like id Software and Bethesda Game Studios have lost significant talent, raising concerns about the loss of institutional knowledge and the ability to maintain core franchises and proprietary technology.
Black Flag Resynced glitch splits the sea and lets ships sail underwater
Assassin's Creed Black Flag Resynced features a recurring glitch that causes ships to sail underwater, a bug also present in the original 2013 game. This comical issue has emerged amidst player complaints about day-one microtransactions and PC offline mode problems. Meanwhile, the team at Ubisoft Barcelona responsible for the game's underwater sections is reportedly facing layoffs, sparking protests from staff.
"There are no benefits to being owned by Microsoft": Xbox owners accused of cultivating a "disposable worker mentality" in damning report on layoffs
A report details the impact of recent Microsoft layoffs on Xbox employees, including those at Bethesda, ZeniMax, and id Software. The article highlights a "disposable worker mentality" fostered by unclear goals and abrupt termination processes, with some employees expressing disillusionment with being owned by Microsoft and questioning the value of their work in terms of job security.
IWGB Game Workers union forms 'redundancy taskforce' to defend workers' rights
The IWGB Game Workers Union has formed a new taskforce to support workers facing redundancy, aiming to ensure all layoffs are legal and fair. This initiative comes amid widespread layoffs in the industry, including recent cuts at Xbox and Rockstar Games. The union highlights the need for solidarity and worker empowerment against what they describe as mismanagement and greed.
'Below Any Reasonable Standard': Assassin's Creed Black Flag Resynced Developers Fighting to Save Jobs, Secure Fair Severance Pay at Ubisoft Barcelona
Striking employees at Ubisoft Barcelona, a co-developer of Assassin's Creed IV: Black Flag, are protesting the company's severance pay offer following news of up to 51 job eliminations. The staff have described the initial offer as "below any reasonable standard."
11 Bit Studios lays off 20 workers as it "adjusts new project teams to current needs"
11 Bit Studios has laid off approximately 20 employees as it restructures project teams to align with current needs. The studio stated that its financial situation remains stable and that the majority of affected employees have been transferred internally to other ongoing projects. This follows a previous workforce reduction earlier in 2024 after the cancellation of a project codenamed Project 8.
As unionised Microsoft workers rally against Bethesda layoffs, Fallout 4's been filled with protest signs and OneBGS logoed vault suits by modders
Unionized Microsoft workers are protesting recent mass layoffs affecting over 400 employees at Bethesda Game Studios, ZeniMax, and id Software. In solidarity, modders have added union logos and protest signs to games like Fallout 4 and Skyrim. Union representatives criticize the layoffs, stating they will negatively impact game quality and player experience.
'The entire thing is going to fall apart:' Inside the latest round of mass layoffs at Xbox
Microsoft's Xbox division has conducted its fifth round of mass layoffs since 2023, impacting 3,200 employees across studios like Bethesda, ZeniMax Online Studios, and id Software. Employees describe the process as cruel and self-defeating, with swift video calls and disabled communication channels. The cuts have led to significant loss of institutional knowledge, particularly concerning id Software's proprietary id Tech engine and the development teams for major franchises like Fallout and The Elder Scrolls.
Evening Reading - July 14, 2026
This edition of Evening Reading from Shacknews covers various gaming industry updates, including pre-order guides for Halo: Campaign Evolved and Fatal Fury: City of the Wolves DLC. It also reports on Ubisoft Barcelona developer strikes over layoffs, a delay for the PlayStation FlexStrike Fight Stick, and the retirement of Dead Space creator Glen Schofield. Additionally, the article touches on non-gaming news regarding data centers and healthcare.
Layoffs might offer "better short-term financial results," late Nintendo president Satoru Iwata admitted in 2013, but "employees who fear that they may be laid off" will never produce the same results
Late Nintendo president Satoru Iwata believed that while layoffs might offer short-term financial gains, they negatively impact employee morale and the ability to create impactful games. He famously took a 50% salary cut in 2011 and avoided layoffs during financial lows, emphasizing long-term business strength through employee contributions and efficiency rather than workforce reduction.
Ubisoft Barcelona Workers to Continue Strike Due to “Far Below The Minimum Expected” Severance Pay
Employees at Ubisoft Barcelona are planning a larger strike on July 16th due to dissatisfaction with severance pay offered following 51 layoffs. Negotiations have broken down, with employees stating the offered pay is "far below the minimum expected." Ubisoft confirmed the layoffs are part of a broader restructuring to reduce costs and potentially refocus the Barcelona studio on Rainbow Six projects.
The Elder Scrolls Online Team Can’t Release Content At Its Previous Speed , Says Former Developer
A former senior encounter designer for The Elder Scrolls Online, Morgan Goin, stated that recent layoffs at ZeniMax Online Studios will significantly slow down the MMORPG's content release pace. Goin, who was among those laid off, expressed surprise, as internal reports suggested the studio was performing well and contributing positively to Microsoft's metrics. The layoffs have reduced the studio's workforce considerably, impacting its ability to maintain its previously announced seasonal content roadmap.
DOOM Studio’s Claims That it Can Still Make Games “Stretches Reality”, Says Former Employee
A former id Software employee claims the studio's assertion of having sufficient staff after recent layoffs is unrealistic, stating that critical programming, engineering, and design teams have been significantly depleted. The employee highlighted the loss of institutional knowledge, particularly concerning the id Tech engine, and suggested that the studio's ability to develop future games is compromised. id Software maintains its headcount is comparable to the DOOM (2016) development period and is committed to its philosophy of all employees being makers.
Dead Space creator Glen Schofield is retiring: "Times are tough right now, but the future ahead is really, really…
Glen Schofield, the creator of Dead Space and director of multiple Call of Duty titles, has announced his retirement after 35 years in the gaming industry. Schofield expressed gratitude for his career, highlighting his work on Dead Space at EA and several Call of Duty games with Sledgehammer Games and Activision. He also acknowledged the current turbulent times in the industry, marked by layoffs and AI controversies, but expressed optimism for the future.
Former employees sue over Meta's alleged use of biased AI systems during layoffs
Former Meta employees are suing the company, alleging that biased AI systems were used to determine who would be laid off. Meta cut its workforce by 10 percent in May, and the lawsuit claims the AI used was discriminatory.
"How Ubisoft and Embracer leadership aren't in prison absolutely eludes me": Helldivers 2 studio QA manager laments "darkest timeline" as layoffs hurt thousands
Arrowhead Game Studios QA manager Dave Gallacher criticizes the current state of the video game industry, highlighting massive layoffs at companies like Xbox, Ubisoft, and Embracer Group. He expresses frustration with corporate greed and the perceived misuse of funds, particularly concerning the rise of AI in game development. Gallacher laments the "darkest timeline" for developers, while acknowledging his own complex feelings about the industry despite the ongoing turmoil.
Hollywood still has time to avoid the gaming industry's disastrous consolidation endgame
The article draws parallels between Hollywood's historical consolidation and the current state of the gaming industry, highlighting the risks of fewer companies controlling more assets. It discusses the potential negative impacts of mergers, such as layoffs and reduced creative diversity, using examples like Microsoft's acquisition of Activision Blizzard and the proposed Paramount-Warner Bros. Discovery deal. California's lawsuit to block the latter merger is presented as a potential regulatory intervention.
Massively OP Podcast Episode 572: A punch to Elder Scrolls Online’s gut
The Massively OP Podcast episode 572 discusses significant layoffs at ZeniMax Studios impacting The Elder Scrolls Online. Other topics include EverQuest Legends' paid beta, Aion 2's business model, Tencent's acquisition of the PlanetSide IP, and Fiesta Online's upcoming console release.
Assassin's Creed Black Flag Resynced crosses 2 million in sales as studio strikes over proposed layoffs
Assassin's Creed Black Flag Resynced achieved over two million sales on its release day, with a peak of 99,451 concurrent players on Steam. Meanwhile, Ubisoft Barcelona, which reportedly handled the game's water technology, is striking over proposed layoffs of 51 workers. Ubisoft stated the layoffs are part of a broader cost-reduction effort and a strategic shift to focus the Barcelona studio on Rainbow Six projects.
Studio founded by former Star Wars: Galaxy of Heroes GM lays off staff
Azra Games, a studio founded by former EA executive Mark Otero, has laid off an unspecified number of employees less than two years after raising $42 million in investment. The studio stated the staffing reduction is a shift from a production phase to optimization and polish for its upcoming game, UnGodly. This news follows reports of other studios, including 11 Bit Studios, also undergoing layoffs.
