Xbox reportedly planning more layoffs and studio consolidation this year

Microsoft's gaming division appears set for a fresh round of job losses, just months after a devastating summer cut that claimed roughly 1,600 roles and saw several studios leave the company entirely. According to a report from The Information (via VGC), "hundreds" of Xbox employees could learn their fate this week, alongside plans to "consolidate" parts of the studio lineup.

What the Report Says

The Information's reporting doesn't specify exactly what the consolidation will involve, but it points to possible mergers or reorganization across Xbox's publishing arms — Xbox Game Studios, Bethesda, Activision, and Blizzard.

As for where the axe might fall, Bloomberg's Jason Schreier said on the 8-4 Play podcast, published September 18th, that cuts at Blizzard are "coming and imminent."

A Brutal Year Already

This would be the second major blow in a matter of months. In July, Xbox CEO Asha Sharma confirmed that 3,200 roles would go over the coming financial year, with the first wave accounting for roughly half that figure.

That July round saw five studios cut loose. Compulsion Games (South of Midnight) and Double Fine (Psychonauts) were spun back out as independents. Undead Labs (State of Decay) and Ninja Theory (Hellblade) were handed to new owners, while Arkane, the studio behind Dishonored, remains in limbo at the time of writing.

The layoffs also reached studios that stayed under the Xbox umbrella, with Bethesda, Id Software, ZeniMax Online, and Obsidian all affected.

Bigger Games, Fewer Bets

Alongside the cuts, Xbox has shifted its strategy toward large, proven franchises. That's led to moves like assigning the remaining Obsidian team to a new Fallout project.

Our solidarity goes out to every developer caught up in this year's Xbox layoffs. Xbox's parent company Microsoft also remains the target of a BDS movement boycott over its reported ties to the Israeli military.

What comes next is unclear until Microsoft or Xbox confirms the reported cuts, but with The Information pointing to this week, more news could arrive imminently.

Source: the original publisher