Xbox layoffs, June 2025: Job losses, studio closures, game cancellations – everything that’s happened this week

It has been a devastating week for the video games trade as a whole lot of workers have misplaced their jobs at Xbox because of a spherical of layoffs throughout mother or father firm, Microsoft – layoffs which have totaled in extra of 9000. It has been a depressingly common story within the video video games trade over the previous few years, and it is seemingly issues are going to proceed on this vein all through the remainder of 2025. It is bleak on the market.

As soon as seen as a recession-resistant area, builders and publishers have been making layoffs in important numbers for the previous few years; you might bear in mind headlines noting 860 layoffs at Epic, 1800 redundancies at Unity. 900 by PlayStation, 530 at Riot – and even a earlier 1900 by Xbox.

This week, Microsoft instigated an extra spherical of layoffs – that makes 4 rounds in below two years. Microsoft instructed Eurogamer these layoffs have been “essential to place the corporate and groups for fulfillment in a dynamic market.”

That can assist you course of these seismic occasions, we’ve damaged down the updates of the week into headers so you may extra simply digest the land because it stands as we head into the vacation weekend of 4th July.

Affected initiatives and personnel

Uncommon’s fantasy journey Everwild, introduced over six years in the past and principally saved quiet since, has reportedly been cancelled. Subsequently, Gregg Mayles – who has been at Uncommon for a large 35 years – introduced his departure from the corporate.

The reboot of Excellent Darkish, developed by The Initiative, has been cancelled as a part of the newest spherical of cuts at Microsoft. The reboot of Uncommon’s sequence was first introduced again in December 2020, and has been in growth at The Initiative ever since. After quite a few setbacks, Tomb Raider developer Crystal Dynamics was introduced in to help; however it appears the challenge won’t ever see the sunshine of day. Joanna Darkish actor Alix Wilton Regan implored followers to make use of their voices to save lots of Excellent Darkish, after the sport was cancelled by Microsoft earlier this week.

Romero Video games, the small Irish sport growth studio arrange by veteran video games devs John Romero and Brenda Romero, had its funding pulled by Microsoft, ending growth of an all-new shooter IP. Unconfirmed reviews counsel all the growth workforce has been laid off.

Forza Motorsport “isn’t any extra”, claims a former Flip 10 worker. Ex-content coordinator, Fred Russell, shared a submit on Fb with pictures from throughout his time engaged on the sequence, noting: “Flip 10 Studios has shuttered the Forza Motorsport house and the workforce isn’t any extra.” Forza Horizon growth, it is advised, will proceed. Per Bloomberg’s Jason Schrier, virtually 50 % of Flip 10 employees has reportedly been laid off.

Chris Linn, senior producer at Zenimax On-line Studios, has confirmed the cancellation of an unannounced MMO – codenamed Blackbird – on LinkedIn. “Immediately was one of many largest disappointments of my 35 12 months lengthy profession in video games. My disappointment is not primarily for myself, however for my workforce, and for gamers that can by no means get to play the superb sport we have been constructing.” Zenimax On-line Studios president Matt Firor additionally introduced his intention to step down because of the layoffs and the cancellation of the unannounced sport.

Per Bloomberg, Microsoft’s King cell gaming division is shedding 200 individuals – that is round 10 % of the workforce. Non-game particular groups have additionally been affected. As reported by The Verge, workers in Xbox’s person analysis workforce have been laid off, together with head of product for household and youngster security Mike Mongeau.

Xbox response

Xbox head Phil Spencer addressed this week’s job cuts in a memo to employees (by way of IGN).

“Immediately we’re sharing selections that can influence colleagues throughout our group. To place Gaming for enduring success and permit us to give attention to strategic progress areas, we’ll finish or lower work in sure areas of the enterprise and observe Microsoft’s lead in eradicating layers of administration to extend agility and effectiveness. Out of respect for these impacted at this time, the specifics of at this time’s notifications and any organizational shifts will likely be shared by your workforce leaders within the coming days.

“I acknowledge that these modifications come at a time when we’ve extra gamers, video games, and gaming hours than ever earlier than. Our platform, {hardware}, and sport roadmap have by no means seemed stronger. The success we’re seeing at the moment is predicated on powerful selections we have made beforehand. We should make selections now for continued success in future years and a key a part of that technique is the self-discipline to prioritize the strongest alternatives. We are going to shield what is flourishing and focus effort on areas with the best potential, whereas delivering on the expectations the corporate has for our enterprise. This targeted method means we are able to ship distinctive video games and experiences for gamers for generations to return.

“Prioritizing our alternatives is important, however that doesn’t reduce the importance of this second. Merely put, we might not be the place we’re at this time with out the time, vitality, and creativity of these whose roles are impacted. These selections aren’t a mirrored image of the expertise, creativity, and dedication of the individuals concerned. Our momentum isn’t unintended — it’s the results of years of devoted effort from our groups.

“HR is working immediately with impacted workers to offer severance plan advantages (aligned with native legal guidelines), together with pay, healthcare protection, and job placement sources to assist their transition. Staff whose roles have been eradicated are inspired to discover open positions throughout Microsoft Gaming, the place their purposes will likely be given precedence assessment.

“Thanks to everybody who has formed our tradition, our merchandise, and our neighborhood. We are going to transfer ahead with deep appreciation and respect for all who’ve contributed to this journey.”

In an e mail to employees – seen by Eurogamer, Jason Schrier and Home windows Central – Xbox’s studio head, Matt Booty, added:

“Following Phil’s be aware, I need to share extra concerning the modifications to the Studios enterprise items,” the e-mail reads.

“We’ve made the choice to cease growth of Excellent Darkish and Everwild in addition to wind down a number of unannounced initiatives throughout our portfolio. As a part of this, we’re closing considered one of our studios, The Initiative. These selections, together with different modifications throughout our groups, mirror a broader effort to regulate priorities and focus sources to arrange our groups for higher success inside a altering trade panorama. We didn’t make these selections flippantly, as every challenge and workforce symbolize years of effort, creativeness, and dedication.”

In a remarkably tone-deaf follow-up to the layoffs, Xbox Recreation Studios Publishing govt producer Matt Turnbull advised laid-off employees use generative AI to assist with the method of discovering a brand new job. A since-removed LinkedIn submit learn:

“I do know all these instruments engender sturdy emotions in individuals, however I would be remiss in not attempting to supply one of the best recommendation I can below the circumstances. I have been experimenting with methods to make use of LLM AI instruments (like ChatGPT or Copilot) to assist cut back the emotional and cognitive load that comes with job loss.”

Turnbull’s submit continued with a sequence of generative AI immediate concepts for serving to workers discover new work, and an invite to “share with others in your community.”