Insiders Claim Massive XBOX Layoffs Could Hit Multiple Studios

XBOX is reportedly preparing for a major round of layoffs as Microsoft’s financial year comes to a close, with several studios said to be at risk as the company looks to reshape its gaming business.

Rumors about new XBOX job cuts have been circulating for several weeks, but recent claims suggest the scale could be much larger than a routine restructuring. Long-time game producer George Broussard has claimed that the upcoming cuts could become the largest single layoff event in gaming history.

Broussard also warned that the move could make XBOX deeply unpopular among players and developers for a long time, especially if the cuts affect major studios or lead to project cancellations.

XBOX layoffs could affect multiple studios

According to recent reports, several well-known XBOX studios may be vulnerable during the restructuring process. Undead Labs, Double Fine, Compulsion Games, and Ninja Theory have all been mentioned as studios that could face uncertainty.

The reports claim that some of these teams may try to find alternative funding or attempt to regain independence if Microsoft decides to reduce its support. However, if no solution is found, some affected studios could allegedly face closure.

Even studios that remain open may not escape the cuts. Broussard suggested that surviving teams could still lose staff as Microsoft scales back spending across the XBOX business.

Microsoft may focus on its biggest franchises

The reported layoffs appear to be part of a broader effort to make XBOX more financially sustainable after years of heavy investment in studios, subscriptions, cloud gaming, and acquisitions.

Microsoft CEO Satya Nadella has previously said that XBOX needs to become more sustainable, and the company now appears to be moving toward a more focused strategy.

That could mean fewer risky projects and a stronger focus on major franchises with proven commercial value. Franchises such as Fallout, Call of Duty, and The Elder Scrolls may become even more important to Microsoft’s gaming strategy.

XBOX restructuring may continue through the week

The full scale of the XBOX layoffs may not become clear until later in the week. However, the latest reports suggest the cuts could affect multiple parts of the division, not only individual studios.

The situation has already spread beyond Microsoft’s internal teams. Related companies have also been affected, including Assembly, a major agency partner.

For now, Microsoft has not shared the full details of the reported restructuring. Still, the latest claims point to a major shift for XBOX as the company tries to reduce costs and focus on its most profitable gaming priorities.

Via Push Square