Layoffs
Ongoing coverage on Layoffs.
Latest coverage
Zenimax "reaffirms commitment" to ESO, as Xbox layoffs cut deep
ZeniMax Online Studios has reaffirmed its commitment to The Elder Scrolls Online following significant layoffs at Xbox, which impacted several long-term employees at the MMO studio. While the immediate focus remains on Season One and its planned content, the studio acknowledges that future roadmaps will be adjusted due to the reduced staff. Uncertainty exists regarding the game's long-term functionality and future updates.
Staff at Fallout: New Vegas Developer Obsidian Reportedly Left Unsure How 'Huge List of Projects' Can Continue After Xbox Layoffs Hit Hard
Staff at Obsidian Entertainment are reportedly concerned about the studio's future projects following significant layoffs within Microsoft's Xbox division. The uncertainty stems from a 'huge list of projects' and the impact of the recent job cuts on the development team.
It looks like Blizzard's escaped Xbox's grim reset scythe for now, though there's still time to be caught in the second 1600-strong layoff wave coming 2027
This article discusses potential future layoffs at Blizzard Entertainment, suggesting the company might avoid the immediate 'reset scythe' from Microsoft but could still face a significant wave of job cuts in 2027. The author notes the impact such news would have on employee morale.
Ex-Xbox dev slams game execs as ‘money grubbing idiots’ in quote of the year
A former Bungie and 343 Industries developer, Dan Callen, has criticized game executives, calling them 'stupid detached money grubbing idiots.' Callen shared an anecdote about former Xbox executive Don Mattrick suggesting Halo 4 should implement a real money auction house for mech skins, a concept that had previously failed in Diablo 3. This criticism comes amid recent layoffs at Sony and Microsoft, highlighting ongoing issues within the games industry.
United Videogame Workers union announces fund for laid-off employees
The United Videogame Workers union has launched the Game Worker Hardship Fund to assist video game industry employees in the US and Canada impacted by layoffs since 2024. The fund offers financial aid up to $5,000 USD and is supported by union fees. This initiative comes amid recent job cuts at companies like Xbox, Electronic Arts, Bungie, and Behaviour Interactive, highlighting a precarious period for the industry.
Latest Xbox layoffs hit id Software as Doom: The Dark Ages' DLC launches, around half of the staff potentially cut
Xbox is implementing significant layoffs, impacting id Software heavily just as its new DLC for Doom: The Dark Ages is set to launch. Reports suggest around half of id Software's staff, potentially including most coders, may have been cut. This follows broader workforce reductions across ZeniMax studios and other Xbox-owned entities, raising concerns about the future of the id Tech engine and the studio's development capabilities.
Xbox Moves On From 4 Studios and Layoffs Off Thousands of Others
Xbox has announced significant restructuring, impacting over 1600 employees and planning for another 1600 over the next two fiscal years. Four studios—Double Fine Productions, Compulsion Games, Ninja Theory, and Undead Labs—will become independent or be acquired by new entities, retaining their intellectual property. Numerous other studios, including Zenimax Online, Id Software, Obsidian, and Bethesda Game Studios, are also undergoing substantial layoffs as Xbox refocuses on its major franchises like Call of Duty, The Elder Scrolls, Fallout, Halo, and Minecraft.
Xbox's layoffs come with a push to focus on series like Fallout, so naturally New Vegas devs Obsidian have reportedly lost around a quarter of their staff
Xbox has reportedly laid off approximately 1600 employees and is shifting focus to lucrative series like Fallout. As part of these cuts, Obsidian Entertainment, known for Fallout: New Vegas, has lost around a quarter of its staff, with 60-70 employees let go. This news comes amid broader industry trends of significant layoffs and uncertainty for remaining developers.
Xbox CEO Asha Sharma says "a healthy Xbox could weather" the current storm, but Microsoft's gaming brand…
Xbox CEO Asha Sharma stated that the recent layoffs and significant restructuring at Microsoft's gaming division were necessary due to a lack of focus on the core business and spreading resources too thin. She admitted that a healthier Xbox could have better weathered the current hardware cost crisis, and outlined plans to refocus on the flagship console, explore new business models, and expand availability on PC and mobile.
Bethesda pivots to "franchise-centric" planning model amid Xbox restructure
Bethesda is shifting to a franchise-centric planning model to focus on long-term growth and stability, as announced by CEO Jill Braff. This change occurs amidst a broader Xbox restructuring that includes 3,200 job cuts and downsizing at several studios like ZeniMax Online Studios and Arkane Lyon.
As layoffs continue to ravage the games industry, a union across North America establishes a fund to help those impacted by it
The United Videogame Workers union, in partnership with the Communications Workers of America, has launched the Game Worker Hardship Fund to assist industry professionals impacted by layoffs since January 2024. The fund offers up to $5,000 for work and life expenses, with contributions coming from union membership dues and a new itch.io charity bundle. This initiative aims to provide a lifeline to workers affected by recent industry-wide job cuts.
Xbox layoffs mean that Elder Scrolls Online's roadmap is "shifting" just two days before Season One's release... the plan put in place for the MMO after the last round of cuts
Microsoft's recent layoffs at Xbox Game Studios and Zenimax Online Studios have significantly impacted the development roadmap for Elder Scrolls Online. While the upcoming Season One launch will proceed, future plans are now uncertain and will require re-evaluation by the remaining team. This shift comes despite previous statements from studio leadership indicating the seasonal model was not a response to prior cuts.
The Elder Scrolls Online studio reportedly suffers a second large wave of layoffs in a year, with "up to half" of the team impacted
Zenimax Online Studios, the developer of The Elder Scrolls Online, has reportedly experienced a second major wave of layoffs within a year, with some sources indicating that up to half of the studio's staff may have been impacted. The company cited a need for 'improving long-term growth' as the reason for the cuts, with a stated focus on its major franchises like The Elder Scrolls, Fallout, Doom, Quake, and Wolfenstein. This follows previous substantial layoffs and the cancellation of an in-development MMO.
Report – Xbox cuts around 25% of Obsidian staff
Xbox has initiated significant layoffs across its studios, with Obsidian Entertainment reportedly losing around 25% of its staff, impacting producers, artists, designers, and more. This is part of Microsoft's larger plan to lay off 3,200 employees by June 2027, though Blizzard Entertainment teams have been spared for now. The restructuring aims to shift focus away from smaller acquired studios, but the arbitrary nature of the cuts is causing concern over lost expertise.
Zenimax omorganiseras för att fokusera på sina stora varumärken
ZeniMax Media is undergoing a significant restructuring to concentrate on its major franchises like The Elder Scrolls, Fallout, Wolfenstein, Doom, and Quake. This reorganization follows recent layoffs at Xbox and involves some studios becoming independent or being sold, though ZeniMax itself retains its studios.
Evening Reading - July 6, 2026
The video game industry is facing significant challenges, with Microsoft confirming mass layoffs that will lead to Double Fine Productions and Compulsion Games becoming independent. Xbox has appointed Helen Chiang, head of Mojang Studios, as its first Chief Operating Officer. Additionally, Nintendo plans to discontinue original Switch consoles in Europe in 2027, while Microsoft is being sued in Wisconsin over data center practices.
Xbox to cut 3200 jobs in the new financial year
Microsoft's Xbox division is undergoing its most significant restructure in history, with approximately 3,200 jobs being cut over the next fiscal year, including 1,600 immediately. Five game development studios are also departing, with Double Fine and Compulsion Games becoming independent, while Ninja Theory, Undead Labs, and Arkane Studios are in various stages of negotiation or consultation for new ownership. Xbox CEO Asha Sharma cited unhealthy business margins and a strategic shift towards AI investment as reasons for the cuts.
How XBOX Layoffs Impact Studios
Reports indicate that recent Xbox layoffs have affected several Microsoft studios, with Blizzard Entertainment's president reportedly sending an email to staff. The extent of the impact on these studios is still being assessed.
How Leaving XBOX Impacts Studios
Following recent announcements of layoffs at Xbox, Double Fine Productions and Compulsion Games have become independent studios once again. Double Fine Productions has released a statement regarding this change on Bluesky.
Report: Obsidian losing around one quarter of its staff to 'Xbox reset'
Obsidian Entertainment has reportedly laid off approximately one quarter of its staff, impacting 60-70 employees as part of a larger 'Xbox reset'. The cuts affect various departments, including senior talent and the art director for The Outer Worlds. This follows a broader announcement of 3200 layoffs at Xbox, with leadership citing a need to course-correct after ambitious bets on Game Pass and multi-platform strategies did not yield expected results.
