This week, it was rumored that Microsoft might be letting go of some employees from their Xbox department as part of a broader company reorganization. Reportedly, Tom Warren of The Verge’s sources indicated substantial layoffs are imminent in the Microsoft Gaming division and Turn 10 Studios, renowned for creating the popular Forza Motorsport series, who seem to be preparing for reductions in staff.
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View Urgent ForecastAccording to a tweet from George Broussard, founder and industry veteran at 3D Realms, he indicated that multiple studios could potentially close down. If these layoffs occur, it’s estimated that they may affect between 1000 and 2000 individuals, which equates to roughly 10-20% of the Xbox division’s workforce.
Although Microsoft hasn’t officially confirmed upcoming layoffs, it did let go of 3% of its employees from all departments globally earlier this year. Additionally, there were downsizing efforts last year after the acquisition of Activision Blizzard, leading to the closure of studios like Tango Gameworks, Arkane Austin, and Alpha Dog Games.
It might seem peculiar given a new Forza is due next year, but potential layoffs at Turn 10 Studios could mean Microsoft is shifting focus from Forza Motorsport 2023, which didn’t meet expectations, to the next installment of Forza Horizon instead. Keep an eye out for future announcements to see what unfolds.
Reports suggest impending layoffs at Xbox, but from what insiders are saying, there’s a palpable sense of unease and concern among employees across nearly all studios. There are rumors that entire studios could be closed down. It’s anticipated that the number of affected individuals could range between 1000 to 2000 people, given that Xbox currently employs approximately 10,000.
— George Broussard
(@georgebsocial) June 26, 2025
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2025-06-26 23:41