Xbox to reduce workforce by 3,200, five studios to be divested

Life's been busy and I've missed lots of interesting news, but dropping in to share this big one we've all been waiting for.

Also, 500 subs here now. Weird times.

Lots of updates to this news today and likely to continue as the splitting studios find their own path forward. Here's some of them from GI.biz:

IO Interactive closing it's Istanbul studio because of a lost Xbox contact:

https://www.gamesindustry.biz/io-interactive-to-shutter-istanbul-studio-following-end-of-project-fantasy-deal-with-xbox

Bethesda/Zenimax losing staff, Obsidian losing dozens, id software possibly losing all (?!) of its programmers...

https://www.gamesindustry.biz/xbox-layoffs-july-2026

Xbox Game Pass subscriptions are at half their goal.

https://www.gamesindustry.biz/xbox-game-pass-reportedly-boasts-around-30m-subscribers

And the new Xbox CEO saying they were spread too thin:

https://www.gamesindustry.biz/we-simply-spread-ourselves-too-thin-xboxs-asha-sharma-on-firms-restructuring-plans

Wednesday, July 8th:

Hundreds of union members from the Communication Workers of America were affected by the mass layoffs at Xbox this week

https://www.gamesindustry.biz/workers-deserve-protection-not-to-be-treated-like-disposable-line-items-hundreds-of-union-members-affected-by-xbox-layoffs

&&

UPDATE: A WARN notice filed in Texas indicates 136 employees have been laid off at id Software, with another 22 people roles being cut at Bethesda Game Studios' office in Austin.

Out of those 158 workers being laid off in Texas, 146 are represented by labor union Communication Workers of America.

https://www.gamedeveloper.com/business/report-around-half-of-the-id-software-team-have-been-laid-off

Microsoft’s layoffs include the 37-year veteran behind Xbox backwards compatibility

https://www.videogameschronicle.com/news/microsofts-layoffs-include-the-37-year-veteran-behind-xbox-backwards-compatibility/

Thursday,, July 9th

Xbox has laid off 379 Zenimax workers in Maryland

https://www.gamedeveloper.com/business/xbox-had-laid-off-379-zenimax-workers-in-maryland

Update: WARN notice confirms at least 52 Obsidian workers are being laid off

https://www.gamedeveloper.com/business/report-obsidian-losing-around-one-quarter-of-its-staff-to-xbox-reset-