‘I feel like I’m grieving’: staff on the devastating fallout of widespread layoffs at Xbox
On 6 July, Xbox chief executive Asha Sharma emailed staff at Microsoft's gaming division to announce the largest restructuring in the console business's history: 3,200 job losses across the 2027 financial year, with 1,600 roles cut immediately. Affected employees describe an abrupt process – short, camera-off Teams calls with a studio manager followed swiftly by the loss of access to Slack and email – leaving little chance to react or say proper goodbyes, and taking a significant emotional toll on those let go.
Workers at Bethesda Game Studios Austin and ZeniMax Online Studios, both unionised since 2024, are now negotiating severance and possible re-employment through bargaining committees, while rallies have been held outside studio buildings across North America. Under the US WARN Act, affected staff at American studios continue to be paid until 4 September, giving the required 60 days' notice. Employees said rumours of cuts had circulated for weeks, referencing a Bloomberg report from 10 June, but many believed their work on high-profile franchises such as Skyrim and Fallout would protect their jobs.
- Microsoft/Xbox cut 3,200 jobs, its biggest-ever console division restructuring.
- Staff describe abrupt, camera-off layoff calls with immediate Slack/email cutoff.
- Unionised Bethesda and ZeniMax staff now bargaining over severance and rehiring.
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Microsoft’s Xbox division makes consoles and publishes games through studios such as Bethesda Game Studios and ZeniMax Online Studios. Its teams work on long-running series including The Elder Scrolls and Fallout, and include employees who are members of unions.
Large companies sometimes restructure by cutting jobs or changing which projects and teams receive funding. In the US, the WARN Act requires employers to give many workers 60 days’ notice before a large layoff, usually through continued pay. Unionised employees can negotiate with their employer over matters such as severance and possible re-employment.