Eidos Montreal lays off 124 staff amid leadership change

Embracer-owned Eidos Montreal has laid off 124 employees due to changing project needs. Studio head David Anfossi, a 19-year veteran, is also departing. The studio described the cuts as necessary to focus efforts where it can be most effective.

Eidos Montreal announced on Monday that it is reducing its workforce by 124 people across production and support teams. The studio stated, “The reduction in workforce affecting 124 employees is a result of changing project needs and impacts across production and support teams.” It added, “Today is a difficult day for our studio and reflects the need to adapt and concentrate efforts where Eidos Montréal can be most effective.” The company emphasized its gratitude to those affected, noting the decision does not reflect their talent or performance and committing to support them respectfully while ensuring team continuity. After many years as head of studio, David Anfossi is parting ways with Eidos Montreal. The studio thanked him for his contributions and said a transition plan is underway, with updates on new leadership to follow. This marks the latest in a series of layoffs at the Deus Ex developer, following cuts of 75 staff in March 2025 and another round last December. Eidos Montreal released Marvel’s Guardians of the Galaxy in 2021 and has been supporting Xbox projects including Grounded 2 and Fable. Insider Gaming earlier reported the studio's work on a new AAA open-world action-adventure game in development since 2019, alongside mothballed projects like pitches for a Deus Ex sequel.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Obsidian Entertainment is cutting 60 to 70 positions, roughly a quarter of its workforce, as part of broader Xbox restructuring announced earlier this week.

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Chicago-based game studio Iron Galaxy has laid off dozens of employees as it adapts to changes in the gaming industry. The announcement follows the release of the Tony Hawk’s Pro Skater 3 + 4 remaster collection. A source indicated the cuts could affect up to 90 staff members.

Microsoft announced major layoffs across its gaming division and other units on July 6, 2026. The cuts total 4,800 positions, or 2.1 percent of the global workforce. Xbox is divesting several studios as part of the reset.

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Electronic Arts has carried out another round of layoffs affecting roles in recruitment, customer support, Trust and Safety, and IT. The cuts come as the company prepares to go private in a multibillion-dollar deal.

Ubisoft has reached a confidential settlement with 61 former employees from its Halifax studio, who unionized before the studio closed. The union members voted overwhelmingly in favor of the deal, as announced by CWA Canada. Developers praised the company for respecting the union during negotiations.

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Microsoft is reportedly weighing the closure of Undead Labs, the studio behind the State of Decay series, as part of a broader reset of its Xbox division. The move could affect 110 jobs at the studio, which is currently developing State of Decay 3.

 

 

 

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