Impending XBOX restructuring could reportedly be the ‘largest single layoff event in gaming history’

The long-rumored wave of layoffs coming to XBOX in the next week or so may be difficult to fathom, and worse than originally imagined. That info comes from George Broussard, a former developer on games like Duke Nukem, Max Payne, and Prey, who cited unnamed sources “from inside” the company on the unfortunate subject. Image via XBOX https://embeds.beehiiv.com/a8d62108-86ed-4039-bf49-44877ba62c15 “I just got word of a list of XBOX studio closures (no, not posting them),” Broussard said on Twitter/X. “If it’s even close to true (and it’s from inside) this will likely be the largest single layoff event in gaming history.” That last bit is important to note, because Microsoft already holds the unfortunate record for job cuts in one fell swoop: back in 2024, the gaming division torched around 1,900 jobs in the wake of the pricy $75 billion acquisition of Activision Blizzard. If Broussard’s sources are correct, the new number for July 2026 may dwarf that. And it’s devastating to even think about. “XBOX is going to be supremely unpopular for a very long time and the devastation is going to reverberate like the meteor that took out the dinosaurs,” Broussard said. “On top of all that there will also be layoffs at the studios that remain.” The turnover, led by new XBOX CEO Asha Sharma, began a few weeks ago with layoffs at South of Midnight developer Compulsion Games. But since then, rumors have circulated about several other studios taking big hits, being shut down, or hopefully being allowed to go independent. Ninja Theory (Hellblade series) and Double Fine (Kiln, Keeper, Psychonauts) are also reportedly on the chopping block, according to Bloomberg’s Jason Schreier, and State of Decay 3 dev Undead Labs may also be in trouble, according to Gamesbeat. I’m not sure what to think or say that hasn’t been repeated ad nauseum at this point. I can’t bring myself to feel too bad for XBOX’s image as a brand in the wake of these impending changes. My heart and mind is with everyone who may be affected by the layoffs, and I can only wish that somehow things will turn around in the gaming industry soon, but it’s difficult to feel hope in that regard. 0 The post Impending XBOX restructuring could reportedly be the ‘largest single layoff event in gaming history’ appeared first on Destructoid.

Jun 30, 2026 - 23:43

Impending XBOX restructuring could reportedly be the ‘largest single layoff event in gaming history’

The long-rumored wave of layoffs coming to XBOX in the next week or so may be difficult to fathom, and worse than originally imagined.

That info comes from George Broussard, a former developer on games like Duke Nukem, Max Payne, and Prey, who cited unnamed sources “from inside” the company on the unfortunate subject.

Image via XBOX https://embeds.beehiiv.com/a8d62108-86ed-4039-bf49-44877ba62c15 “I just got word of a list of XBOX studio closures (no, not posting them),” Broussard said on Twitter/X. “If it’s even close to true (and it’s from inside) this will likely be the largest single layoff event in gaming history.”

That last bit is important to note, because Microsoft already holds the unfortunate record for job cuts in one fell swoop: back in 2024, the gaming division torched around 1,900 jobs in the wake of the pricy $75 billion acquisition of Activision Blizzard. If Broussard’s sources are correct, the new number for July 2026 may dwarf that. And it’s devastating to even think about.

“XBOX is going to be supremely unpopular for a very long time and the devastation is going to reverberate like the meteor that took out the dinosaurs,” Broussard said. “On top of all that there will also be layoffs at the studios that remain.”

The turnover, led by new XBOX CEO Asha Sharma, began a few weeks ago with layoffs at South of Midnight developer Compulsion Games. But since then, rumors have circulated about several other studios taking big hits, being shut down, or hopefully being allowed to go independent. Ninja Theory (Hellblade series) and Double Fine (Kiln, Keeper, Psychonauts) are also reportedly on the chopping block, according to Bloomberg’s Jason Schreier, and State of Decay 3 dev Undead Labs may also be in trouble, according to Gamesbeat.

I’m not sure what to think or say that hasn’t been repeated ad nauseum at this point. I can’t bring myself to feel too bad for XBOX’s image as a brand in the wake of these impending changes. My heart and mind is with everyone who may be affected by the layoffs, and I can only wish that somehow things will turn around in the gaming industry soon, but it’s difficult to feel hope in that regard.

0 The post Impending XBOX restructuring could reportedly be the ‘largest single layoff event in gaming history’ appeared first on Destructoid.

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