Layoffs
Ongoing coverage on Layoffs.
Latest coverage
Obsidian Reportedly Lays Off Staff; Cancels Avowed 2; Starts a New Fallout
Obsidian Entertainment has reportedly laid off approximately 25% of its staff and canceled a second project related to Avowed. The studio has also begun work on a new Fallout title, according to an unconfirmed report.
136 Layoffs at id Software
id Software has experienced 136 layoffs, with 96 employees affected at their Richardson offices and an additional 40 remote workers. These job losses are part of a larger trend impacting the company in 2026.
id Software Was Reportedly Considering Perfect Dark, A John Wick-Style Shooter And More Doom Before Xbox Layoffs
id Software experienced significant layoffs, leading to the cancellation of several projects including a new Perfect Dark game and an original IP. The studio's future creative direction is now uncertain following these workforce reductions.
Obsidian Entertainment may be pivoting to a Fallout game amid layoffs & reorganization
Obsidian Entertainment is reportedly undergoing reorganization and layoffs, with speculation that the studio may be pivoting to a new Fallout game directed by Josh Sawyer, potentially shelving projects like an Avowed sequel. Conflicting reports suggest that The Outer Worlds 2 expansions and Avowed 2 are still in development or being re-pitched, though project pauses are rumored.
New Vegas devs Obsidian are reportedly working on a new Fallout game, and only Microsoft could make news I've waited half my life for taste this bitter
Obsidian Entertainment is reportedly set to begin development on a new Fallout game, helmed by Fallout: New Vegas director Josh Sawyer. This news comes as Microsoft recently laid off approximately a quarter of Obsidian's workforce. The article expresses mixed feelings, lamenting the circumstances under which this project is being greenlit, suggesting it's a business decision driven by Microsoft's focus on established franchises rather than purely creative desire.
Xbox just laid off a core Bethesda artist who worked on Skyrim, Oblivion, Morrowind, Fallout 3, and Fallout 4 –…
Microsoft's recent wave of layoffs has impacted Bethesda, with lead character artist Christiane Meister, a 27-year veteran who worked on major titles like Skyrim, Oblivion, Morrowind, Fallout 3, and Fallout 4, being let go. This move highlights significant cuts within Microsoft's gaming division, affecting core talent behind beloved franchises.
Laid-off id Software artist says Microsoft is 'nuking the team into the dirt' and is now the size of a…
Microsoft's recent layoffs have significantly impacted id Software, with 136 roles eliminated, reducing the studio to what a laid-off VFX artist describes as 'support studio size.' This downsizing has led to the elimination of entire teams, including VFX and engine programming, raising concerns about the future of the idTech engine and the studio's creative output.
Bethesda union says company HR forced staff to remove a display honoring their laid-off colleagues
The Bethesda Game Studios Union reported that HR forced employees to remove a display honoring colleagues who were laid off during recent Xbox job cuts. The union stated that common areas are typically used for various displays, but HR deemed the memorial inappropriate. This incident occurred amidst significant layoffs across Microsoft's gaming division, impacting numerous long-term employees.
Obsidian Is Working On A New Fallout Game, And Avowed 2 Cancelled
Obsidian Entertainment is reportedly shifting focus to a new Fallout game, canceling projects including Avowed 2 amidst company layoffs. This strategic pivot occurs during a period of significant restructuring within Xbox.
UPDATE: id Software Has Lost 136 of Its 185 Employees
Xbox is undergoing significant layoffs, with 1,600 jobs cut across the company. id Software has been particularly affected, potentially losing a substantial portion of its staff, raising concerns about the studio's future projects and development capacity.
New Fallout Game Is New Focus For New Vegas Developer Obsidian Entertainment – Report
Obsidian Entertainment is reportedly shifting its focus to a new Fallout game, potentially shelving a planned sequel to Avowed and other unannounced projects. Studio design director Josh Sawyer, who previously directed Fallout: New Vegas, is expected to lead the new project. This news comes as Obsidian recently experienced significant layoffs due to Microsoft's restructuring of its Xbox division.
Fallout and Elder Scrolls union says Bethesda layoffs didn't hurt Microsoft's "14 layers of management" – "We lost dozens of programmers, artists, designers and testers"
Microsoft's recent layoffs significantly impacted Bethesda Game Studios, ZeniMax Online, Obsidian Entertainment, and id Software, affecting dozens of programmers, artists, designers, and testers, not just management. The Bethesda Game Studios Union expressed outrage, calling the cuts a "stressful annual routine" and urging fans to voice concerns through Microsoft's feedback portal to prevent future layoffs and studio closures.
Obsidian is reportedly making a new Fallout game headed by Josh Sawyer after Microsoft pulled the plug on an Avowed…
Obsidian Entertainment has reportedly cancelled projects including a sequel to Avowed and is shifting focus to a new Fallout game, led by design director Josh Sawyer. This news follows significant layoffs at the studio, with around a quarter of its workforce reportedly let go. Sawyer previously directed Fallout: New Vegas and has expressed interest in leading a new Fallout title under specific conditions.
Xbox Kills Obsidian’s Avowed Sequel In The Wake Of Layoffs – Report
Xbox has reportedly cancelled the sequel to Obsidian Entertainment's action-RPG Avowed and laid off approximately a quarter of the studio's staff. The cancellation is part of a larger strategic reset by Xbox CEO Asha Sharma, with Obsidian now focusing on the Fallout franchise. While the Avowed sequel was progressing well, it did not align with Xbox's current strategy, though a small chance of its revival remains.
Fallout: New Vegas studio Obsidian reportedly working on a new Fallout RPG after forced pivot from Xbox kills Avowed 2…
Obsidian Entertainment is reportedly pivoting to develop a new Fallout RPG following significant layoffs at Microsoft's Xbox division, which also led to the cancellation of Avowed 2. Josh Sawyer is said to be leading the new Fallout project, which may be related to a previously unannounced RPG he was working on.
Blizzard eliminates 'small number' of roles in China
Blizzard Entertainment has eliminated a small number of roles in China as part of an operational model evolution in the region. Studio president Johanna Faries stated these changes are intended to strengthen regional publishing and product management capabilities. This news follows broader layoffs announced by Xbox, impacting thousands of employees across Microsoft's gaming division.
Bernie Sanders Rips Microsoft For Xbox Layoffs And Price Hikes
US Senator Bernie Sanders has criticized Microsoft for recent layoffs affecting 4,800 employees, including 3,200 at Xbox, and for increasing the price of the Xbox Series X. Sanders highlighted Microsoft's substantial profits and CEO's compensation, arguing that corporate tax breaks do not create jobs and that these actions contradict such benefits.
17 years later, Minecraft is finally adding somewhere to sit
Minecraft is introducing craftable cushions and new straw beds in its latest preview build, allowing players new ways to rest. These additions come as Mojang, an Xbox-owned studio, is impacted by significant layoffs affecting numerous gaming companies.
Well, at least one good thing's come out of Destiny 2's demise: lob tomatoes at ex-Bungie CEO Pete Parsons' car collection in this fan-made boss battler
A fan-created browser game, 'Pete Carsons: The Vault of Cars,' allows players to lob tomatoes at ex-Bungie CEO Pete Parsons and his car collection. Released on July 7th, the satirical game serves as a way for fans to express frustration following Destiny 2's development end and Bungie's layoffs, as well as Parsons' past spending on cars during staff reductions.
Comings and Goings
Atari has appointed Andreas Deptolla as the new president of Atari Europe. In separate news, Microsoft has conducted layoffs that include a long-serving employee responsible for Xbox backwards compatibility.