Microsoft's Xbox division laid off hundreds of employees in a meeting that lasted barely 60 seconds, according to multiple former staff members speaking to Game Developer. The swift dismissals have devastated key studios, including id Software and ZeniMax Online Studios, leaving remaining workers fearful as another 1,600 cuts are scheduled over the next year.
Employees Reject Xbox's Positive Spin
Former employees are pushing back against Xbox management's attempts to frame the layoffs positively. One source told Game Developer that at id Software, the layoff call was extremely brief, accusing Microsoft of trying to 'shove off' responsibility onto unions. Another source criticized Xbox's stated focus on core franchises like Fallout and The Elder Scrolls, saying, 'Bethesda Game Studios lost a lot of talent this week. Xbox says they want to focus on their core franchises like Fallout and Elder Scrolls but that's going to be harder than ever now.'
Institutional Knowledge Lost at id Software
The dismantling of id Software is particularly severe. Game Developer's report indicates that most of the staff who worked on the Doom: The Dark Ages | Revelation DLC have been let go. A source claimed, 'They've just gotten rid of all the people who could ever fix, maintain, or change [id Tech],' referring to the custom game engine used for Doom and other Bethesda titles. The source believes this signals the abandonment of id Tech, adding, 'I cannot imagine a path forward where they make another game in id Tech.' Xbox has publicly stated that it still wants more Doom games, but the source argued that there are simply not enough people left to make them.
Xbox attempted to downplay concerns via a statement on id Software's X account, claiming the studio still has 'the crew we need to build the games and tech we're known for' and that it is now about the same size as when it released the 2016 Doom game. However, former employees note that many of the key people responsible for that game's success are no longer employed.
ZeniMax Online Studios Also Gutted
According to Game File, ZeniMax Online Studios, the developer behind The Elder Scrolls Online, has also been severely affected, losing its leadership team and studio head Joseph Burba, who had been with the studio since 2012. The studio is transitioning to new leadership despite The Elder Scrolls Online reportedly performing well after pivoting from annual expansions to seasonal content updates.
One source explained to Game Developer that internal metrics showed the studio was doing fine: 'All of the information that was ever visible to us out of those numbers meetings—out of the monthly staff meetings—were that we were doing fine. We were improving on the metrics [Microsoft] wanted us to improve on.' Former staff member Morgan Goin told the BBC that players should expect slower content updates: 'We're not going to be able to put out the amount of content at the speed that we were… or anything approaching that.'
More Layoffs to Come
Perhaps the most alarming aspect is that the layoffs are not over. Of the 3,200 people let go, only half were immediately impacted; the remaining 1,600 are set to leave before next July, with no clarity on which positions or studios will be affected. Remaining Xbox employees now face the challenge of developing new games while appeasing upper management without any job security. As one source put it, 'I don't know how anyone remaining at Xbox studios can feel safe knowing another 1,600 cuts are coming.'
