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  1. Games

Of the 9,000 workers let go in Microsoft's layoff blitz, less than half were at Xbox specifically

News
By Jordan Gerblick published 2 July 2025

With numerous canceled games and a shuttered studio, the Xbox cuts were still less than half of the 9,000 lost jobs

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As the dust settles on one of the more turbulent days the gaming industry has seen in a minute, it's been revealed that the Xbox layoffs accounted for less than half of the 9,000 redundancies Microsoft announced today.

Microsoft's downsizing included the cancelation of Rare's action-adventure game Everwild, the cancelation of Xbox's Perfect Dark reboot and the shuttering of studio The Initiative, the cancelation of an unannounced ZeniMax Online MMO, the reduction of Forza studio Turn 10's workforce by about 50%, and cuts to big name studios including Bethesda and Blizzard. It's likely that the full impact on other teams and projects will dribble out over the coming days and weeks.

Elder Scrolls Online director Matt Frior announced his departure from ZeniMax Online after 10 years with the company amidst the chaos, although it's not explicitly linked. It's also been reported that Banjo Kazooie and Sea of Thieves director Gregg Mayles has left the Xbox-owned Rare.

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  • Xbox Xbox's new EVP Matt Booty says "there are no organizational changes underway" following abrupt leadership shakeup

With that much carnage, the vast scope of an organization as big and compartmentalized as Microsoft is illuminated by the fact that the Xbox cuts amounted to less than half of the overall lost jobs, per Microsoft itself (via Stephen Totilo's Game File). It appears Xbox still bore the brunt of Microsoft's decision, but it's worth highlighting how that compares to the broader reorganization.

Altogether, 4% of Microsoft's workforce, which was reported last year to be 228,000, has now been made redundant.

Xbox boss Phil Spencer said in a memo accompanying the announcement of the layoffs that "our platform, hardware, and game roadmap have never looked stronger," and that "the success we're seeing currently is based on tough decisions we've made previously."

"Phil is not retiring anytime soon": Xbox responds to rumors Phil Spencer is leaving after Microsoft's next console launch

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Jordan Gerblick
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After earning an English degree from ASU, I worked as a corporate copy editor while freelancing for places like SFX Magazine, Screen Rant, Game Revolution, and MMORPG on the side. I got my big break here in 2019 with a freelance news gig, and I was hired on as GamesRadar's west coast Staff Writer in 2021. That means I'm responsible for managing the site's western regional executive branch, AKA my home office, and writing about whatever horror game I'm too afraid to finish.

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