Insider on Xbox layoffs: “Everything will completely fall apart”

The wave of layoffs at Xbox is causing massive unrest. While insiders report chaotic conditions and a huge loss of expertise in the studios, thousands of fans are calling for an end to the closures on an official platform.

Protests against Xbox strategy

Microsoft’s gaming division has been at the center of heavy criticism for some time. The company plans to cut 3,200 jobs at Xbox, 1,600 of which have already been eliminated. The approach not only hits the workforce hard, but also calls the players on the scene. Massive resistance to the ongoing studio closures is forming on the company’s official Player Voice portal. A post calling for an end to the waves of layoffs collected over 3,000 votes within a short period of time.

Users argue that the constant closure of development studios is damaging to creative diversity. They also criticize the management team because the managers continue to receive high bonuses. The players are demanding that the pace of growth be slowed down in favor of stability.

Cold approach to terminations

Behind the scenes, former employees criticize the process of the layoffs. Like the industry magazine Game developer reported, the layoffs at studios like Bethesda and id Software were extremely abrupt. Affected employees were fired in short video calls in which microphones were muted and cameras were sometimes deactivated.

Access to internal communications was immediately blocked. According to insiders, the approach leads to a high loss of internal specialist knowledge. At id Software, around 90 percent of the gameplay design team as well as key developers of the in-house id-Tech engine are said to have been laid off. Even long-time industry veterans had to leave the company.

Success does not protect against expulsion

The workforce also criticizes the fact that even commercial success does not offer any protection against dismissals. Although titles like Doom: The Dark Ages achieved high player numbers, large parts of the responsible teams were fired shortly after release. This creates an atmosphere of uncertainty among the remaining employees. A further 1,600 jobs are to be cut by mid-2027.

While Microsoft says it wants to focus on core brands like Fallout, employees doubt that’s possible with such a reduced workforce. Internally, there are fears that the cost savings will jeopardize the long-term quality of the upcoming games. “The whole thing will fall apart because we are so interdependent, and you can’t just lay off a third or almost half of the employees,” said one insider.