Microsoft executive responding to media about Xbox layoffs in a corporate setting.
Microsoft executive responding to media about Xbox layoffs in a corporate setting.
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Microsoft responds to conspiracies over Xbox layoffs

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Microsoft's communications lead addressed claims that recent Xbox layoffs aimed to replace American workers with foreign hires. The company cut over 3,000 positions to restructure the division.

Frank Shaw posted on X that the changes targeted an unhealthy Xbox business and were not meant to swap employees for foreign workers. He noted that H-1B visa figures cover the entire company and that layoffs affected staff worldwide.

id Software issued a statement thanking supporters and confirming it retains the team size used for Doom 2016. The studio plans to continue building games and attend QuakeCon in August.

Obsidian Entertainment game director Brandon Adler described the week as extremely difficult after losing colleagues. He rejected online claims that the studio has changed fundamentally, stating its DNA remains the same as during Fallout: New Vegas and other past projects.

Xbox shifted Obsidian toward a new Fallout game while reports indicate work continues on an Avowed sequel. Multiple other studios including Compulsion Games and Ninja Theory were closed in the cuts.

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Users discussed Microsoft's denial of claims linking Xbox layoffs to H-1B hires. Opinions ranged from dismissing the claims as baseless conspiracy theories to questioning the company's motives amid broader H-1B debates. Some highlighted the restructuring purpose while others pointed to timing of visa approvals as suspicious.

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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.

Microsoft is preparing mass layoffs that could affect up to 5,500 employees, with roughly 1,000 positions potentially eliminated in the Xbox division.

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A new report has described an atmosphere of uncertainty and fear among remaining staff at Xbox following recent restructuring by Microsoft.

id Software has laid off 136 employees, more than half its workforce, as part of broader Microsoft job reductions.

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Users of the Xbox Player Voice portal are calling for an end to studio closures and layoffs following recent cuts at Microsoft. The top trending thread has drawn thousands of upvotes and comments expressing frustration with leadership.

Microsoft is reportedly in talks to close several Xbox game studios as part of a broader restructuring. Negotiations involve studios behind well-known titles including Psychonauts, South of Midnight, and Hellblade.

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Microsoft is reportedly considering the closure of Arkane Studios along with four other studios as part of a broad reset of its Xbox division. The changes could also result in the cancellation of the Marvel's Blade game.

 

 

 

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