Microsoft Announces Additional Layoffs and Restructuring Changes at Xbox
- Microsoft has confirmed 268 new layoffs at Xbox amidst ongoing restructuring.
- In July, Xbox CEO Asha Sharma announced cuts affecting 3,200 employees; 1,600 were immediate.
- Ninja Theory faces proposed closure, while Arkane’s consultation continues into year-end.
Microsoft has announced a new wave of layoffs affecting 268 employees at Xbox as part of its major restructuring efforts. This follows prior reports indicating potential job cuts within the company.
In July, Xbox CEO Asha Sharma detailed a significant restructuring, resulting in layoffs for 3,200 employees, with 1,600 of those cuts taking immediate effect. Several first-party studios, including Double Fine and Compulsion Games, were allowed to operate independently again.
With looming threats of additional job losses, Sharma has enacted further layoffs impacting Halo Studios, other unspecified first-party studios, and members of Xbox Game Studios’ “management and central functions layer.”
Recent reorganization efforts have led to significant changes among Xbox studios. In a note to employees shared on the Xbox blog, Matt Booty, Xbox’s executive vice president and chief content officer, stated that Rare, the developer behind Sea of Thieves, and World’s Edge, known for Age of Empires/Mythology, will now operate under Activision. Furthermore, Playground and Turn 10 will collaborate on projects including Forza and Fable, while Bethesda will oversee Obsidian, which is currently working on Grounded and a new Fallout project.
In addition, the next installment of the Halo franchise will be developed by Activision, led by a new team separate from Call of Duty. A smaller team at Halo Studios will remain to support the “Halo community and games in-market.”
Booty mentioned that these changes aim to “strengthen our franchises and games by operating fewer business units,” enabling better alignment among teams and enhanced publishing expertise. He provided updates on Ninja Theory and Arkane, whose futures remain uncertain after July’s cuts.
Ninja Theory is now facing “proposed closure” following the failure of two separate agreements, prompting Microsoft to begin consultations with affected employees while exploring alternative paths. Meanwhile, discussions regarding Arkane, the studio behind Dishonored and Deathloop, are expected to continue through the end of the year.
These recent developments bring Microsoft closer to completing its announced restructuring process, which has already led to over 1,300 employees facing layoffs since July.
News Courtesy of Eurogamer
