Xbox Layoffs June 2025: Job Cuts, Studio Closures & Game Cancellations
▼ Summary
– Microsoft laid off over 9,000 employees, including hundreds at Xbox, marking the fourth round of cuts in under two years.
– Several high-profile projects were canceled, including Rare’s *Everwild*, *Perfect Dark*, and an unannounced MMO codenamed *Blackbird*.
– Studios like The Initiative and Romero Games were affected, with some teams entirely disbanded, such as Turn 10’s *Forza Motorsport* team.
– Xbox leadership cited strategic realignment as the reason, prioritizing growth areas while offering severance and job placement support to affected employees.
– A tone-deaf suggestion from an Xbox executive advised laid-off staff to use AI tools like ChatGPT to aid in job searching, sparking backlash.
The gaming industry faces another wave of upheaval as Microsoft’s Xbox division announces sweeping layoffs, studio closures, and project cancellations. The latest cuts, part of broader restructuring efforts, impact hundreds of employees and mark the fourth round of job losses at Microsoft in under two years. With over 9,000 positions eliminated across the company, the move reflects ongoing challenges in an increasingly competitive market.
High-profile casualties include Rare’s long-awaited fantasy adventure Everwild and The Initiative’s Perfect Dark reboot, both officially scrapped after years of development. Gregg Mayles, a 35-year veteran at Rare, confirmed his departure following Everwild’s cancellation, while Perfect Dark’s lead voice actor, Alix Wilton Regan, publicly urged fans to rally behind the axed project.
Smaller studios weren’t spared either. Romero Games, founded by industry legends John and Brenda Romero, lost funding for its unannounced shooter IP, with reports suggesting the entire team was let go. Meanwhile, Turn 10 Studios reportedly disbanded its Forza Motorsport team, though the Horizon series will continue. Bloomberg estimates nearly half of Turn 10’s staff was affected.
Zenimax Online Studios also faced setbacks, canceling an unannounced MMO codenamed Blackbird. Chris Linn, senior producer, called it “one of the biggest disappointments” of his 35-year career. Studio president Matt Firor announced his resignation in the wake of the layoffs.
Microsoft’s mobile gaming division, King, trimmed 10% of its workforce, while Xbox’s user research team saw cuts, including Mike Mongeau, head of family and child safety. The broader restructuring aligns with Microsoft’s strategy to streamline operations and focus on high-potential projects.
In an internal memo, Xbox head Phil Spencer acknowledged the difficult decisions, emphasizing the need to prioritize growth areas while supporting affected employees with severance and job placement resources. Matt Booty, head of Xbox Game Studios, confirmed the closure of The Initiative and the winding down of multiple unannounced projects, calling the moves necessary for long-term success.
The aftermath sparked controversy when Xbox executive Matt Turnbull suggested laid-off employees use AI tools like ChatGPT to aid their job search, a recommendation met with backlash before his post was deleted.
As the industry grapples with ongoing instability, these cuts underscore the harsh realities of corporate consolidation and shifting market demands. For developers and fans alike, the fallout serves as a sobering reminder of the fragile balance between creativity and commerce in modern gaming.
(Source: EuroGamer)
