Browsing: layoffs

Xbox has laid off another 268 employees as part of a major reset it commenced in July 2026. At the time, the company said it would becutting 3,200 rolesbefore the end of the fiscal year, starting with 1,600 layoffs across major studios such as Obsidian, Zenimax Online Studios, and id Software.

Microsoft is reportedly preparing another round of Xbox layoffs today. According to a new report from The Verge’s Tom Warren, hundreds of employees could be affected as the company makes further changes to its gaming division. The cuts may also come alongside a reorganization of several Xbox studios.

Psychonauts developer Double Fine Productions was among the five studios spun off from Xbox as part of its ongoing restructuring, and while it (thankfully) avoided closure, the divorce has forced the team to make cuts. Specifically, the studio has announced the departures of 23 staff members.