A recent report from Game Developer has shed light on the internal processes behind the recent 1,600 layoffs at Xbox, revealing a chaotic implementation that left many employees in prolonged states of uncertainty and distress.
Sources speaking to Game Developer described being informed of their job eliminations through brief video calls with management. In several instances, these calls featured disabled chat functions and muted microphones. One account noted that cameras were automatically turned off, preventing those delivering the news from seeing the faces of colleagues being laid off.
For id Software, where over 130 employees were reportedly affected, one source stated the notification call lasted less than 60 seconds. Employees who had already begun commuting to the office were then asked not to come in. Within 48 hours of these calls, access to Slack and internal email was reportedly revoked, forcing colleagues to rely on unofficial channels, many of which are managed by union members and organizers, to understand the unfolding situation.
"Many of us did not know what was happening for weeks," one developer told the site. "Higher ups didn't know or did not say. It was left to all of us to speculate and spiral and worry." Another source from id Software expressed a sentiment of being disregarded, stating, "Does Microsoft care? Absolutely not. And they seem to actually put some level of effort and care into making it as painful as possible."
The report also touches on the looming threat of future layoffs. Xbox CEO Asha Sharma previously indicated that an additional 1,600 job cuts would occur before 2027. This ongoing uncertainty has significantly impacted morale within the company. Developers expressed concerns about job security, with one stating, "I don’t know how anyone remaining at Xbox studios can feel safe knowing another 1600 cuts are coming." Questions were also raised about the company's long-term plans, with one developer asking, "And even then, what happens after June 2027? Will we get layoffs in July for the third year in a row?"
This environment of perpetual instability raises questions about its effect on productivity and employee retention, particularly for a company aiming to maintain a large active player base.