Xbox reportedly set to lay off hundreds more staff and “consolidate” several game studios in second round of major cuts this year


After laying off around 1600 people and parting ways with a number of studios back in July, Microsoft-owned Xbox are reportedly set for another round of job cuts and internal upheaval this week.

This is according to a report from The Information (via VGC), which claims that “hundreds” of staff are set to be given their walking papers this week and that Xbox will “consolidate” some of their game studios.

There doesn’t appear to be any concrete indication of what this reported consolidation will look like yet, but The Information do hint at potential mergers or movement within Xbox’s publishing houses: Xbox Game Studios, Bethesda, Activision, and Blizzard. As for where the layoffs will hit, Bloomberg reporter Jason Schreier suggested cuts at Blizzard are “coming and imminent” in an episode of the 8-4 Play podcast published on September 18th.

Back in July, Xbox CEO Asha Sharma announced that the company would lay off a total of 3200 people over their next financial year, with the initial wave delivering half of that number. That wave saw Xbox move to part ways with five studios – South of Midnight developers Compulsion Games and Psychonauts makers Double Fine became independent again, State of Decay devs Undead Labs and Hellblade developers Ninja Theory found new owners, while the future of Dishonored studio Arkane remains up in the air as of writing.

Meanwhile, layoffs hit remaining studios like Bethesda, Id Software, ZeniMax Online, and Obsidian.

As part of these moves, Xbox pivoted their focus towards big established series, cue changes like what remains of Obsidian being put to work on a new Fallout game.

Solidarity to any and all developers affected by this year’s Xbox layoffs and cuts. Xbox parent company Microsoft are still currently subject to a BDS movement boycott over their reported ties to the Israeli military.



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