Layoffs
Ongoing coverage on Layoffs.
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Making Fallout and Elder Scrolls games will "be harder than ever now" following Xbox cuts, say laid-off Bethesda devs calling loss of institutional knowledge "staggering"
Former Bethesda Game Studios developers report that recent layoffs at Xbox, impacting dozens of staff, will make developing core franchises like Fallout and The Elder Scrolls significantly harder. They expressed concern over the staggering loss of institutional knowledge and its potential impact on future projects, including The Elder Scrolls 6.
Laid-off id Software devs "cannot imagine a path forward where they make another game in id Tech," despite the…
Former id Software developers express doubt about the studio's ability to create future games using the id Tech engine following significant layoffs by Microsoft. Despite a statement from id Software claiming they retain sufficient staff, affected employees believe the loss of institutional knowledge makes continued development of the engine unlikely. This comes as Bethesda reportedly plans to focus on major franchises, including those built on id Tech.
Devs recount chaotic Xbox firings as modders rally behind Bethsoft and ZOS unions
Developers recount chaotic and cruel firings at Xbox, Bethesda, ZeniMax Online Studios, and id Software, with employees reportedly notified via brief, disabled video calls. Remaining staff face low morale and increased workloads, with union members disproportionately affected. The PC modding community has shown support for affected developers by creating mods for Fallout 4 and The Elder Scrolls V: Skyrim, with rallies planned.
"You'll never get another World of Warcraft or Morrowind in the current climate," id Software producer says as constant layoffs batter the industry
id Software producer Andrew Willis criticizes the current state of the video game industry, citing widespread layoffs and mismanagement by executives who lack understanding of game development. He argues that this focus on short-term gains and profit extraction prevents the creation of long-term, impactful franchises like World of Warcraft or Morrowind. Willis suggests that the industry's volatility for employees, despite increasing consumer spending, points to a failure in executive leadership.
Assassin's Creed Black Flag Resynced studio Ubisoft Barcelona goes on three-day strike in protest of layoffs
Ubisoft Barcelona, a studio involved in the development of Assassin's Creed Black Flag Resynced, is staging a three-day strike to protest layoffs. Despite the game's success, 51 workers are reportedly impacted by restructuring. Developers are demanding better severance packages and assurances against future job cuts.
"There are no benefits to being owned by Microsoft," says Doom dev: "They have destroyed immense amounts of value that I don't even think that they're aware of"
A developer at id Software claims there are no benefits to being owned by Microsoft, citing mass layoffs that occurred just before the launch of a new Doom DLC. The developer stated that Microsoft has destroyed significant value and that even successful game launches do not guarantee job security. This comes after reports of 136 out of 185 developers being laid off from the studio.
"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.
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.
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.
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.
