Obsidian Entertainment is cutting 60 to 70 positions, roughly a quarter of its workforce, as part of broader Xbox restructuring announced earlier this week.
The cuts affect artists, designers, writers, producers, programmers and QA testers. Several employees with more than a decade at the studio are impacted, including the art director of The Outer Worlds and the studio’s sole recruiter.
Microsoft did not name Obsidian in its initial disclosure of 3,200 job reductions, but reports indicate the studio is part of the first wave. About half of the total reductions across Xbox will occur immediately, with the remainder scheduled over the coming year; most of Obsidian’s affected roles fall into the initial round.
Narrative designer Jay Turner, whose credits include Avowed, posted on Bluesky that the cuts amount to “Microsoft sacrificial rituals.” An all-hands meeting was held on July 7 to discuss next steps.
Development of Grounded 2 continues, and additional The Outer Worlds 2 downloadable content is still planned. Obsidian was acquired by Microsoft in 2018.
