Following Xbox’s layoffs from earlier this month, now-former employees from its various studios have spoken out about how the entire process seems to be quite self-defeating in nature. Speaking to Game Developer, one Bethesda employee noted that while Xbox CEO Asha Sharma spoke about wanting to focus on major games like Fallout and The Elder Scrolls, the job cuts have made studios less equipped to deal with these ambitious projects.
“Bethesda Game Studios lost a lot of talent this week. Xbox says they want to focus on their core franchises like Fallout and Elder Scrolls, but that’s going to be harder than ever now,” they said. Another employee pointed out that, due to these layoffs, Xbox’s studios are suffering from major brain drain thanks to a loss of institutional knowledge.
“The institutional knowledge that has been lost or will be lost completely as individuals leave the gaming industry altogether is staggering. Those that are left must be scrambling to pick up the pieces.”
Another Bethesda employee has said that Microsoft’s announcement of its plans to cut 1,600 more jobs across Xbox by the end of the fiscal year has also had a massive impact on morale, since none of the workers feel secure about their jobs anymore. They also pointed to the fact that, if another round of layoffs happens in July 2027, it will be the third time massive job cuts have taken place in the month in the span of three consecutive years.
“I don’t know how anyone remaining at Xbox studios can feel safe knowing another 1600 cuts are coming. And even then, what happens after June 2027? Will we get layoffs in July for the third year in a row?” they said.
The fact that morale had started to decline was also brought up earlier this week by Bloomberg’s Jason Schreier, who wrote, “Knowing that a second wave of job cuts could come at any time has led to panic and anxiety among the thousands of people who work for the company.”
While exact figures haven’t yet been revealed, Bethesda is rumored to have been hit quite hard by these layoffs. According to a report, studio head Jill Braff sent out an email to staff members discussing the job cuts, saying that the decision reflects “the realities of our industry and business – and our responsibility to ensure Bethesda is operating from a more stable foundation.”
“To be successful in the future, we need to change course. We must strengthen our business, return to sustainable growth, and ensure we can continue investing in our franchises and our players. I know that doesn’t make a day like today any easier.”
Braff’s alleged email went on to discuss how the company would now start focusing on “our strongest franchises” from its previous operating model that revolved around each independent studio under the Bethesda umbrella working on its own thing.
id Software is also noted as being hit quite hard due to job cuts across its programming and engineering teams that work on the id Tech game engine. However, rumors have indicated that Xbox still has plans to use the engine in the future.
