Fans urge Xbox to end studio closures and layoffs

A post on Microsoft’s Xbox Player Voice Portal calling for an end to studio closures has gained over 3,000 upvotes since last week.

The post criticizes recent cuts across Xbox studios including Activision, Bethesda, Blizzard, and others. It states that 3,200 workers have been laid off in the latest round and highlights a pattern of over 10,000 layoffs in two years.

Users on the portal demand no further layoffs for two years, good-faith union negotiations, and no executive bonuses during cuts. One user wrote that layoffs represent a failure of leadership and that experienced developers are being let go unnecessarily.

Xbox has seen multiple rounds of reductions, with 1,900 staff cut in early 2024, 650 later that year, and more in July 2025. Another 1,600 positions remain at risk over the next 12 months.

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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.

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.

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Union members at Microsoft Xbox held a press conference on June 29 to oppose expected mass layoffs. They argued the company has the resources to avoid cuts and called for stronger protections across all studios.

Xbox is preparing to shut down Compulsion Games and is in talks to close Double Fine and Ninja Theory as well. Studio leaders are negotiating with Microsoft over the studios' futures. Heavy job losses are expected even if some studios go independent.

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Bethesda Game Studios union workers will hold marches on July 15 to protest recent mass layoffs at Xbox that eliminated 440 union positions.

ZeniMax Online Studios has been hit by another round of layoffs, with reports indicating up to half the team may have been affected. The cuts come less than a year after previous reductions at the studio.

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Former Nintendo of America president Reggie Fils-Aimé described recent mass layoffs at gaming companies as a 'red flag' for senior developers considering job offers. Speaking at NYU, he urged caution with firms that have cut jobs in the past four to six years. Fils-Aimé suggested such actions indicate a willingness to repeat them.

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