- Xbox’s latest layoffs confirm over 3,000 job cuts extending into FY 2027.
- These layoffs have led to anxiety and panic within first-party teams, with many fearing another round of huge job cuts.
- It is said that first-party studios are told to use as few resources as possible to avoid becoming potential targets of layoffs.
Xbox CEO Asha Sharma recently confirmed over 3,000 layoffs in what would be the first major round of job cuts under her leadership. She also announced that Microsoft’s gaming division would pursue job cuts into FY 2027 as part of ongoing restructuring efforts.
Reports have noted that these job cuts have hit all sorts of studios, including id Software. Moreover, it is said that Xbox developers are currently working in fear of further job cuts.
Why it matters: Microsoft has become synonymous with layoffs over the last few years, but the company’s gaming division has had it particularly rough this year.
The latest update on this matter comes from popular Jason Scheier via Bloomberg. According to his report, Xbox’s massive job cuts have created an air of anxiety and panic within its studios.
First-party teams are currently wary of another wave of job cuts that targets teams not impacted too heavily by Asha Sharma’s initial decisions. This includes studios like Blizzard, which are working on multiple projects and have remained largely unaffected this time compared to other studios.
The report also notes that an air of uncertainty currently persists within these studios, adding further to the developers’ distress. Many teams are said to be focusing on efficient results in regards to the use of resources to avoid becoming potential targets of future job cuts.
Because creativity and passion play such a huge role in the output of the games industry, Xbox putting its studios under so much stress could ultimately lead to a drastic negative impact on the gaming giant’s employees.
At a time when many of these teams are already struggling, this could become yet another reason for Xbox falling behind compared to its rivals.
What do you make of the report and the current situation within these first-party studios? Let’s discuss in the comments and on the Tech4Gamers Forums.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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