More Xbox Layoffs Reportedly Coming Next Week

Xbox seems to be preparing for another round of job cuts next week. Microsoft is fresh off its Xbox games showcase earlier this month, during which the gaming brand gave The Outer Worlds 2 its October 29 release date, revealed the next game from Double Fine Productions titled Keeper, and even unveiled the ROG Xbox Ally, a new handheld device that will allow Xbox gamers to take their native game libraries with them on the go.

Microsoft has been impacted by the devastating trend of layoffs that has been sweeping the industry since 2022, cutting nearly 3,000 Xbox jobs in just three years. Xbox’s Halo Studio, formerly known as 343 Industries, was one of the teams hit the hardest by these layoffs, with much of its single-player talent being let go. The job cuts seem to have led to the studio pivoting away from picking up where Halo Infinite left off, as rumors suggest an Unreal Engine 5 Halo remake is on the way. Sadly, these ongoing Microsoft layoffs had an even larger impact on Bethesda Softworks last year, as four former Bethesda teams were fully shuttered: Alpha Dog Games, Roundhouse Studios, Tango Gameworks, and Arkane Austin. The closure of Tango in particular caused a huge uproar, as a year prior, Xbox named the studio’s latest release, Hi-Fi Rush, a major success. Thankfully, Tango managed to survive with the help of South Korean publisher Krafton.

As companies across the industry continue to lay off employees, cancel projects, and shutter studios, Microsoft is also turning to job cuts as a way to alleviate financial pressures. A new report by Bloomberg’s Jason Schreier suggests that Microsoft is preparing to lay off more of its Xbox staff next week. Schreier says that these cuts are coming as part of a Microsoft-wide reorganization that’s also targeting Microsoft salespeople.

Another Round of Xbox Layoffs Is Expected Next Week

Which divisions of Xbox this new round of layoffs will affect won’t be made clear until they potentially take place next week, and many wonder which of the first-party Xbox studios, including Activision Blizzard and Bethesda, will come out unscathed. Xbox has laid off the fourth-largest number of employees since 2022, behind only Embracer Group, Unity, and Ubisoft. Furthermore, this will be the fifth major wave of layoffs for Microsoft and Xbox since early 2023, and it will hopefully be the last.

Xbox is in a great spot right now, as its current year of first-party releases has been nothing short of fantastic. Many gamers believe that Xbox Game Pass is currently the best it’s ever been, and its PS5 ports of games like Forza Horizon 5 and Indiana Jones and the Great Circle are working out well sales-wise. Additionally, the company is slated to release its ROG Ally handheld sometime later this year.