Microsoft layoffs: Xbox faces turbulence - up to 2,000 jobs on the line as studio shutdowns loom
It looks like it's going to be a tough week for
Xbox
employees. There are rumors that
Microsoft
's ongoing shake-up could lead to the loss of jobs. Developers are on edge and worried because they've heard rumors that entire studios are closing.
Why are Xbox Studios at risk?
Microsoft is preparing to lay off employees once more. As part of its organizational restructuring, the tech giant is reportedly planning to lay off employees in the Xbox division next week. Bloomberg reported that managers in its Xbox division are expecting significant layoffs.
The Verge quickly supported that, claiming that managers had been notified internally and that the Xbox division might be affected by these cuts as early as next week.
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Will Xbox cut up to 2,000 jobs?
Internal sources and a gaming industry veteran are warning of even deeper cuts, which is making things even more tense in Microsoft's gaming division.
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George Broussard, a seasoned industry veteran and one of the founders of Duke Nukem, wrote on Bluesky earlier today that internal sources anticipate the layoffs to be severe. He stated that up to 2,000 workers could be laid off, which could impact 10% of the Xbox workforce as a whole.
The industry veteran has added to the mounting anxiety, and the situation does not appear to be improving.
'News has reported imminent
Xbox layoffs
, but I'm hearing internal developer stuff where people at most studios are anxious and worried,' Broussard stated. 'Word is that entire studios may be shuttered. Expectation is 1000-2000 people,' as quoted in a report by The Game Post.
These cuts are besides those made earlier this year. Microsoft laid off 6,000 workers in May across its gaming division and other businesses.
More than three hundred people were laid off earlier this month. Naturally, in early 2024, the company laid off 1,900 employees from ZeniMax, Activision Blizzard, and Xbox.
But as of yet, no formal announcement has been made.
How is this impacting employees?
The increasing volume of reports and the specific information coming to light are making matters worse. Uncertain of whether they will still have jobs next week, developers are waiting in limbo. Rumors that entire studios are in jeopardy heighten the sense of urgency.
FAQs
How many Xbox employees could be laid off?
Insiders fear that 1,000-2,000 jobs will be cut soon.
Will Xbox close any of its studios?
Rumors suggest that entire studios may be closed as part of the cuts.
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