Layoffs
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MMO Business Roundup: Xbox’s resolutions, Microsoft’s employee buyouts, and Meta’s mass layoffs
This industry roundup covers several key business developments, including Xbox's strategic resolutions to expand its reach and Microsoft's offering of voluntary buyouts to a portion of its US workforce. Additionally, Behaviour Interactive has conducted layoffs affecting external development partnerships, and Meta has laid off 8,000 employees while closing 6,000 job postings.
Morning Tech Bits
Intel Corporation reported its first-quarter 2026 financial results. Separately, Microsoft is reportedly targeting about 7% of its U.S. workforce with a buyout offer, according to The New York Times.
Microsoft will reportedly invite 7% of their US workers to retire early, as the Xbox division talk up "strong cost discipline"
Microsoft is reportedly offering a voluntary early retirement program to approximately 7% of its US-based employees, targeting those at senior director level and below whose age and years of service total 70 or more. This initiative, aimed at achieving 'strong cost discipline' within the Xbox division and the wider company, follows previous rounds of layoffs. Executive VP Amy Coleman stated the program offers eligible employees a choice for their next step with company support.
Meta reportedly cuts 10% of workforce affecting 8,000 employees
Meta is reportedly cutting 10% of its workforce, impacting approximately 8,000 employees, as it shifts resources towards AI investments. Affected staff will be notified next month, and the company is also closing 6,000 open job postings. This follows previous workforce reductions earlier in the year, including within the Reality Labs VR unit.
Meta to reportedly lay off 8,000 employees
Meta, the parent company of Facebook, is reportedly planning to lay off approximately 8,000 employees. In addition to the layoffs, the company is also canceling plans to hire for 6,000 open positions.
Dead by Daylight Developer Behaviour Interactive Cuts Jobs
Behaviour Interactive, the Canadian developer behind the popular horror game Dead by Daylight, has laid off an undisclosed number of employees. This news comes amidst a broader trend of job cuts within the video game industry in 2026. The lack of transparency surrounding the layoffs has drawn criticism from the game's community, who are concerned about the impact on future content updates and bug fixes for the successful title.
Microsoft to Offer 7 Percent of its US Employees The Option to Retire Early – Rumor
Microsoft is reportedly offering a buyout for early retirement to 7 percent of its US-based employees who meet specific age and tenure criteria. This news follows earlier reports of potential workforce reductions within Microsoft's gaming division and a recent rebranding of Microsoft Gaming back to Xbox.
AI Yi-Yi!
Meta is reportedly planning to lay off 10% of its workforce as the company continues its focus on artificial intelligence development. This news comes amidst broader discussions about AI advancements and international accusations of AI technology theft.
Microsoft is reportedly offering voluntary buyouts to up to 7 percent of its employees
Microsoft is reportedly offering voluntary buyouts to up to 7 percent of its US employees, potentially affecting around 8,750 individuals. This program, aimed at employees at the senior director level and below, is described as a way to offer employees a choice with generous support. The company's significant spending on AI infrastructure is also cited as a factor influencing its financial decisions.
Meta is downsizing by about 10 percent
Meta is implementing another significant workforce reduction, cutting approximately 10 percent of its staff, which amounts to about 8,000 employees. This move is part of an effort to increase efficiency and reallocate resources towards artificial intelligence investments. The company has also eliminated around 6,000 open job positions.
Another round of layoffs, this time from Dead by Daylight studio, Behaviour Interactive
Behaviour Interactive, the studio behind Dead by Daylight, has conducted layoffs due to a decline in demand for external mobile and casual development projects. The exact number of affected employees and any impacted projects remain unconfirmed. This news follows recent announcements from Behaviour Interactive regarding their acquisition of the 7 Days to Die franchise and involvement in a new Serious Sam title.
Dead by Daylight Studio Announces Layoffs in Mobile and External Development Teams
Behaviour Interactive, the studio behind Dead by Daylight, has announced layoffs primarily affecting its mobile and external development teams due to declining demand for such projects. This follows similar recent announcements from Iron Galaxy Studios, Polyarc Games, and Epic Games, with Epic CEO Tim Sweeney citing a downturn in Fortnite engagement and the need for significant cost savings.
Business and Finance
US hardware sales saw a 69% increase in March 2026, driven by strong performance from the Nintendo Switch 2. In separate news, Behaviour Interactive has implemented further layoffs, citing decreased demand for mobile and casual games.
Dead by Daylight developer confirms layoffs
Behaviour Interactive has confirmed layoffs, attributing the decision to a decrease in demand for external development projects. The company did not specify the number of employees affected.
Surrounded by layoffs, Clair Obscur: Expedition 33 Lune actor hopes the next game from Sandfall sticks to what made its debut RPG a hit: "Value the amazing people who made this"
Kirsty Rider, an actor for Clair Obscur: Expedition 33, hopes Sandfall Interactive will continue to value its team and the creative elements that made their debut RPG a success. Despite industry-wide layoffs, Sandfall's lead writer and programmer have indicated a commitment to maintaining their current team structure and focusing on shipping quality games.
Dead by Daylight studio Behaviour Interactive confirms layoffs
Behaviour Interactive, the studio behind Dead by Daylight, has confirmed layoffs due to a decline in demand for mobile and casual external development projects. The company cited the conclusion of remaining engagements and a lack of comparable future opportunities as reasons for parting ways with some employees. This news follows Behaviour's recent acquisition of The Fun Pimps and the closure of its Midwinter Entertainment subsidiary.
Dead by Daylight Behavior Interactive appears to have suffered fresh layoffs, as senior animator announces sudden departure
Behavior Interactive appears to have conducted another round of layoffs, with senior animator Jonathan Veiga announcing his departure due to the cuts. This follows previous layoffs in January and June of 2024. The company recently announced the acquisition of Fun Pimps, developer of 7 Days to Die, and has Serious Sam: Shatterverse upcoming.
Gaming Industry Exodus: Nearly Half of Developers Want Out
A recent survey indicates that 44% of game developers are considering leaving the industry due to widespread layoffs and challenging work conditions. This exodus, particularly concentrated in North America, threatens to deplete the industry of experienced talent and expertise, potentially impacting the quality and development timelines of future games.
Microsoft to Announce Lay-Offs Affecting 15 Percent of Gaming Division – Rumor
A rumor suggests Microsoft is planning to lay off 15 percent of its gaming division workforce, with an announcement potentially coming in early May or June. This follows a hiring freeze in other divisions and comes after recent leadership changes, including the appointment of Asha Sharma as CEO of Microsoft Gaming and the departures of Phil Spencer and Sarah Bond.
Business and Finance
Developers at Iron Galaxy, known for their work with Tony Hawk, lament that the games industry will not return to its previous state, citing ongoing layoffs as a symptom of this change. The article suggests a permanent shift in the industry's landscape.