
Xbox's Massive Layoffs Gut Major Studios and Derail Key Projects
Microsoft's sweeping Xbox restructuring, which cut roughly 3,200 jobs, is continuing to send shockwaves across its first-party studios, and the full scale of the damage is only now coming into focus. ZeniMax Online Studios, the team behind The Elder Scrolls Online, has confirmed over 200 layoffs in Maryland, part of a broader 379-person cut across ZeniMax's Maryland workforce. Obsidian Entertainment is losing an estimated 60 to 70 employees, with a WARN notice confirming at least 52 cuts, representing roughly a quarter of the studio's staff. Meanwhile, id Software, the legendary studio behind Doom and Quake, has reportedly been so severely gutted that its ability to operate as a standalone development team is now in question, with newly revealed game concepts killed before they ever had a chance.


