Report: New Wave of Xbox Layoffs May Impact Up to 2,000 Jobs, Studio Closures Expected

Image: Microsoft via The Game Post

A new report claims Xbox could face up to 2,000 job cuts next week, with fears that entire studios may be shut down as part of Microsoft’s ongoing restructuring.

Earlier this week, Bloomberg reported that Microsoft was planning another round of job cuts. That was soon backed up by The Verge, which said managers had been informed internally, and that these cuts could hit the Xbox division as early as next week.

Now, an industry veteran has added to the growing concern with new claims about the potential scale of what’s coming, and it’s not looking good.

Report: Microsoft Considered Shutting Down Xbox Business Before Bethesda and Activision Acquisitions
Image: Microsoft

Rumor Suggests Up to 2,000 Job Cuts at Xbox

Industry veteran George Broussard, best known as one of the creators of Duke Nukem, posted on Bluesky earlier today, claiming that internal sources are expecting the layoffs to hit hard.. He said the expected number of layoffs could reach as high as 2,000 employees, possibly affecting 10% of the entire Xbox team.

“News has reported imminent Xbox layoffs, but I’m hearing internal developer stuff where people at most studios are anxious and worried,” Broussard said. “Word [is] that entire studios may be shuttered. Expectation is 1000-2000 people.”

Elder Scrolls 6
Bethesda

This comes on top of previous cuts from earlier this year. In May, Microsoft laid off 6,000 employees across its broader operations, including gaming. Just earlier this month, another 300+ were let go. And of course, back in early 2024, the company slashed 1,900 jobs from Xbox, Activision Blizzard, and ZeniMax.

So far, Microsoft hasn’t officially confirmed anything about this rumored next wave. But the growing number of reports and the specific details surfacing are adding to the concern.

Internally, there’s reportedly a lot of stress among teams. Developers are waiting in limbo, unsure if they’ll still have jobs next week. And with talk of entire studios being on the chopping block, the stakes feel incredibly high.

Activision Working on Remastered Reimagined Titles
Activision

What do you think about all this? Are you surprised by the potential scale of these layoffs? Let us know your thoughts in the comments below! We’ll keep you updated as more info comes out.

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