It’s a bleak Monday for Xbox, as the division is losing five of its studios and approximately 20% of its workforce will be laid off throughout the current fiscal year. These changes, referred to as “the most significant restructure in Xbox history” by Xbox boss Asha Sharma, will impact every corner of the business, including Id Software and ZeniMax Online Studios. While the two developers aren’t shutting down, reports claim that they will be losing large portions of their respective workforces.
According to Bloomberg’s Jason Schreier, a “significant” number of staff have been let go, as part of the initial wave of 1,600 layoffs today. Microsoft plans to shed another 1,600 Xbox employees in the months to come. Something Wicked Games CEO–and former Bethesda Studios project lead–Jeff Gardiner has also claimed that Id Software has lost 95 employees, while Bethesda Game Studios laid 35 of its workers off today.
In an open letter, Sharma briefly mentioned that Xbox will focus on higher-priority projects at its studios, including Bethesda and ZeniMax. Schreier reported that the two studios won’t just be focused on Fallout and The Elder Scrolls, but will also continue to work on IP like Wolfenstein, Doom, and Quake.
As the Xbox reset continues, Sharma also mentioned that none of its first-party publicly announced games or projects would be canceled as part of the reductions. According to the wording, InXile Entertainment’s Clockwork Revolution and The Coalition’s Gears of War: E-Day, while Senua and State of Decay 3 from departing studios Ninja Theory and Undead Labs are also still on track to be released.
The status of those games could change when the new owners of those studios take over, and the future of Marvel’s Blade at Arkane Studios also seems murky for now.