● Covered by 1 source · 1 reportMedium impact1 negative
Xbox announces 3,200 layoffs, with 1,600 immediate job eliminations
Key points
- Xbox announced 3,200 layoffs by 2027, with 1,600 immediate eliminations.
- Affected employees were notified via virtual calls and lost access to internal communication platforms.
- Unionized studios like Bethesda and ZeniMax are negotiating severance packages.
- The WARN Act ensures 60 days' notice for US employees, who will be paid until September 4.
Xbox Announces Major Restructuring
On July 6, Xbox CEO Asha Sharma announced a significant restructuring, termed "Resetting Xbox," to employees worldwide. This plan involves eliminating 3,200 positions by the financial year 2027, with 1,600 of these roles terminated immediately.
Employee Notification Process
Following the announcement, affected staff received virtual meeting invitations. Employees reported being on calls where cameras and microphones were disabled, preventing interaction. They were informed of their termination and impending loss of access to internal communication tools like Slack, often within an hour of the initial email.
Impact on Unionized Studios
The layoffs affected employees at studios such as Bethesda Game Studios Austin and ZeniMax Online Studios, both of which unionized in 2024. Union representatives are currently in negotiations with Microsoft to secure severance packages and benefits for affected members, and to explore re-employment opportunities.
Legal Compliance and Employee Support
In the US, the Worker Adjustment and Retraining Notification (WARN) Act mandates a 60-day notice period for mass layoffs. Consequently, US-based employees impacted by the layoffs will continue to be paid until September 4. Rallies are being held outside studio buildings, and the Bethesda union is seeking public support via social media.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Xbox announced a restructuring that will result in 3,200 layoffs by 2027, with 1,600 roles eliminated immediately. This decision impacts employees across various studios, including unionized workers at Bethesda Game Studios Austin and ZeniMax Online Studios.