Microsoft could layoff up to 2,000 Xbox employees and shut entire studios claims veteran game designer

After reports emerged claiming Microsoft will make "major layoffs" to its Xbox Gaming Division next week, a veteran games designer has revealed what the scope of it could be.

George Broussard, who's best known for his work on Duke Nukem 3D, claims up to 2,000 people could be affected and "entire studios may be shuttered".

He posted on BlueSky: "News has reported imminent Xbox layoffs but I'm hearing internal developer stuff where people at most studios are anxious and worried.

"Word that entire studios may be shuttered. Expectation is 1,000-2,000 people. Xbox unit has about 10k people in it? So 10-20 per cent? Good luck to all involved. Brutal."

This comes after Bloomberg's Jason Schreier said layoffs expected next week will be part of a "company wide reorganisation" and "managers within Xbox are expecting substantial cuts across the entire group, according to people familiar with the plans".

If it happens, it will be the fourth huge layoff at Xbox within the past 18 months. It's not yet known how many jobs may be at risk but Schreier said "it's expected to be big".

The Verge's Tom Warren reported he has also heard managers "have been briefed about Xbox cuts and wider layoffs in other parts of Microsoft’s businesses".

Warren added that "one source [told him] Microsoft is restructuring Xbox distribution across central Europe, resulting in some Xbox operations ceasing in some regions".

indy100 has contacted Xbox for comment.

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