Tag: Microsoft layoffs

  • Romero Games Shuts Down After Microsoft Cuts AAA Game Funding

    Romero Games Shuts Down After Microsoft Cuts AAA Game Funding

    Key Takeaways

    1. Romero Games has shut down due to funding withdrawal from Microsoft amid widespread layoffs.
    2. The entire team at Romero Games was laid off, with employees expressing heartbreak over the sudden closure.
    3. Brenda Romero stated that the decision to cut funding was made at a higher level within Microsoft and was beyond the studio’s control.
    4. The studio was founded in 2015 and had grown to 100 employees, previously working on projects like Sigil and Empire of Sin.
    5. The future of Romero Games is uncertain, with staff actively seeking new job opportunities.


    Romero Games, the studio created by video game pioneer and the original DOOM level designer John Romero, has reportedly shut down amid a wave of layoffs at Microsoft. It was initially announced that Microsoft had withdrawn funding for a forthcoming title. This information became public when former employees started discussing it on LinkedIn.

    Layoffs and Closure

    Former employees of Romero Games have indicated that the entire team has been laid off following Microsoft’s decision to cut funding for their unreleased first-person shooter. One staff member expressed on LinkedIn, “Today, I found out our whole studio is being let go because of the layoffs at Microsoft.”

    Employee Reactions

    In the wake of this news, another employee took to LinkedIn to share their heartbreak, stating, “It breaks my heart to state that Romero Games fell victim to the 9,100 Microsoft layoffs today. The best team I’ve ever worked with, and my dream job, gone just like that. It really was a great project and it’s hard to process that it’s over. It’s nothing less than tragic.”

    Statement from Brenda Romero

    Brenda Romero, in a public statement on the social media platform X, revealed that the decision to stop funding was made at a higher level within Microsoft and was outside the studio’s control. She noted that the team had met all their deadlines and received praise for their hard work. The abrupt cancellation was shocking, with Brenda Romero stating, “We deeply wish there had been something, anything we could have done to prevent this outcome.”

    Romero Games was founded in 2015 in Galway, Ireland, and had grown to have 100 employees before its shutdown. Their recent works included Sigil and Sigil 2, along with the strategy game Empire of Sin. In 2022, the studio announced they were developing an ambitious AAA first-person shooter utilizing Unreal Engine 5, supported by Microsoft through its subsidiary, Bethesda.

    Future Uncertain

    Now that Romero Games has ceased operations, its staff is actively looking for new job opportunities. Currently, the future of the studio is unclear as they are “currently evaluating next steps and working quickly to support” their team.

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  • Arkane Studios Founder Links Xbox Game Pass to Microsoft Job Losses

    Arkane Studios Founder Links Xbox Game Pass to Microsoft Job Losses

    Key Takeaways

    1. Raphael Colantonio criticizes Xbox Game Pass as an unsustainable model harming the gaming industry.
    2. Despite claims of profitability, many studios creating games for Game Pass are struggling, with notable closures like Arkane Studios and The Initiative.
    3. Phil Spencer acknowledges slowing growth in Game Pass subscriptions, raising questions about its long-term viability.
    4. Opinions among gamers are divided; some blame Game Pass for layoffs, while others point to poor management and spending issues.
    5. Game Pass subscribers are canceling memberships in protest, suggesting a need for better curation of titles added to the service.


    Following the layoff of 9,000 workers at Microsoft, which has greatly affected Xbox Game Studios, the search for someone to blame has begun. Many developers from studios that Microsoft has shut down have voiced their concerns. Raphael Colantonio, who founded Arkane Studios but left in 2017 before its closure in 2024, took to social media to argue that Xbox Game Pass has played a role in causing instability within the gaming industry.

    Colantonio’s New Role

    Currently, Colantonio is the President and Creative Director at the independent Wolfeye Studios. He expanded on his earlier remarks by stating, “I think Gamepass is an unsustainable model that has increasingly been damaging the industry for a decade, funded by MS’s ‘infinite money’, but at some point, reality has to hit. I don’t believe GP can exist along with other models; they’ll either eliminate everyone else or back down.”

    Questions About Sustainability

    In 2022, Phil Spencer mentioned that Xbox Game Pass is making money, but there have been indications of slowing growth in subscriptions. Colantonio doubts the sustainability of this model compared to traditional methods, such as charging full prices for games.

    Even though there are profits, many studios that create games for Xbox Game Pass are not doing well. Arkane Studios is a case in point; its game Redfall launched on Game Pass right on its release day. Additionally, Hi-Fi Rush, despite its positive reception, did not save Tango Gameworks from being shut down by Microsoft. More recent closures include The Initiative, before it could launch Perfect Dark on Game Pass.

    Diverse Opinions Among Gamers

    However, not all players agree with Colantonio’s view that Game Pass is a significant reason behind Microsoft’s job cuts. Some observers attribute these layoffs to reckless spending and inadequate management of quickly acquired studios. Another consideration is Microsoft’s growing dependence on AI; analysts suspect the company might already be using AI tools to replace essential employees in game development.

    In the meantime, some Game Pass subscribers are canceling their memberships in protest. For certain members, the overall harm to the industry might outweigh the convenience offered by access to AAA titles on their release day. Other gamers are urging Microsoft to be more discerning about what gets added to the service, as not every Xbox Game Pass game is suited for a monthly subscription. Colantonio suggested that classics and older titles should continue to be a mainstay in its offerings.

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  • Microsoft Shifts Focus to AI Agents Amid Mass Layoffs

    Microsoft Shifts Focus to AI Agents Amid Mass Layoffs

    Key Takeaways

    1. Microsoft is laying off 9,000 workers across various departments, framed as organizational adjustments.
    2. CEO Satya Nadella revealed that about 30% of Microsoft’s code is now generated by AI, indicating a push for AI integration.
    3. There are concerns about employee morale, with some expressing frustration over job cuts despite the company’s profitability.
    4. The memo from management suggested that the layoffs aim to increase “agility and effectiveness,” hinting at a potential replacement of human roles with AI.
    5. While Microsoft has not officially linked AI agents to the layoffs, the trend of using AI in development is evident in projects and internal initiatives.


    Microsoft is currently undergoing another significant wave of layoffs, letting go of 9,000 workers across different departments. Although the company’s leadership refers to these layoffs as organizational adjustments, a recent report from a developer familiar with the situation suggests that Microsoft aims to substitute its human employees with artificial intelligence.

    AI Integration on the Rise

    At the LlamaCon AI developer event held by Meta in May, Microsoft CEO Satya Nadella noted that around 30% of the code produced by the company is now generated by AI. It appears that Microsoft is accelerating its AI integration efforts, which may be linked to the recent job cuts. An Engadget report quotes a developer at Microsoft, who received a memo from Phil Spencer but was not among those laid off, indicating that management is “trying their hardest to replace as many jobs as they can with AI agents.”

    Concerns About Employee Morale

    While the report didn’t go into much detail about this assertion, the memo did mention “increase agility and effectiveness” as one of the reasons for the layoffs. If AI agents are properly utilized, they have the potential to greatly streamline various processes, lending credibility to the developer’s claim that Microsoft is striving to replace human roles with AI technology. This trend isn’t isolated, as even Amazon has recently communicated to its staff that AI agents will take over certain human job functions.

    The developer also expressed frustration over the memo and the overall state of development at Microsoft. “I’m personally really angry that Phil’s email to us highlighted that this was the most profitable year ever for Xbox while also announcing layoffs. I wasn’t clear on what part of that I was meant to feel proud about,” the developer reportedly told Engadget. They further mentioned that employees are dissatisfied with the product quality and that there’s a lot of motivational talk being used to boost morale.

    The Future of AI at Microsoft

    It’s important to highlight that Microsoft has not directly connected AI agents to the layoffs. However, given the prevalence of AI-generated code, the use of generative AI in projects like Call of Duty: Black Ops 6, and other internal AI initiatives, it seems that AI agents are a key objective for the company.

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  • Microsoft Cuts 9000 Jobs, Xbox Division Faces Major Layoffs

    Microsoft Cuts 9000 Jobs, Xbox Division Faces Major Layoffs

    Key Takeaways

    1. Microsoft is laying off approximately 9,000 employees, representing nearly 4% of its global workforce, to simplify its structure for fiscal year 2026.
    2. The gaming division, especially the King division known for Candy Crush, is significantly impacted, with about 200 job cuts (10% of its workforce).
    3. This is the fourth round of layoffs in the Xbox division over the past 18 months, following previous cuts totaling around 10,000 jobs in 2023.
    4. The layoffs are part of Microsoft’s strategy to adapt to a changing market and to prioritize the best opportunities for future success.
    5. Microsoft aims to streamline its management structure by reducing layers between executives and employees.


    Microsoft has decided to lay off around 9000 staff members, impacting nearly 4% of its total global workforce across different teams and locations. This decision represents another phase of layoffs as the company seeks to simplify its structure at the beginning of its fiscal year for 2026. The software giant from Redmond usually makes organizational changes at the start of each fiscal cycle.

    Company Statement

    “We are continuing to execute the necessary organizational changes to position the company and teams for success in a changing market,” said a spokesperson for Microsoft.

    Impact on Gaming Division

    The gaming sector is one of the most significantly affected areas. According to Bloomberg, workers from Microsoft’s gaming division, including the Xbox team, were notified about the job cuts early Wednesday. Specifically, the King division, based in Stockholm and famous for the widely played game Candy Crush, is cutting about 10% of its workforce, which translates to around 200 jobs lost. Other layoffs have been confirmed in European gaming offices, with further announcements expected for U.S. divisions later today.

    Phil Spencer, the CEO of Microsoft Gaming, addressed the layoffs through an email to employees, stating:

    “I understand that these changes occur at a time when we have more players, games, and gaming hours than ever. Our platform, hardware, and game plans have never been more robust. The success we are currently experiencing is a result of difficult choices we’ve made in the past. We must make decisions now to ensure continued success in the coming years, and a crucial part of that strategy is the discipline to prioritize the best opportunities.”

    Recent Layoff History

    This is the fourth round of cuts in the Xbox division over the last 18 months. Last year, Microsoft cut nearly 2000 jobs in the gaming sector, including positions at Xbox and Activision Blizzard, and also shut down three ZeniMax game studios after acquiring them in 2021. These actions are part of Microsoft’s ongoing efforts to integrate following its $69 billion acquisition of Activision Blizzard in October 2023.

    The latest layoffs come after several rounds of job reductions this year. Earlier, in January, Microsoft let go of less than 1% of its workforce based on performance assessments. In May, the company laid off over 6000 employees, followed by 300 more positions cut in June. By June 2024, Microsoft had around 228000 employees globally. In 2023 alone, the company had already decreased its workforce by 10000.

    As with the layoffs in May, Microsoft aims to streamline its management structure by minimizing the layers between top executives and individual contributors.

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  • Microsoft May Cut 2000 Xbox Jobs, Forza Horizon Studio Affected

    Microsoft May Cut 2000 Xbox Jobs, Forza Horizon Studio Affected

    Key Takeaways

    1. Upcoming reductions in the Xbox Gaming division may affect up to 2000 jobs by the end of June.
    2. George Broussard estimates that 10-20% of Xbox Gaming staff could be at risk, while other sources suggest cuts may be less than 10%.
    3. The future of Xbox games is uncertain, with hints that Turn 10 Studios could be in jeopardy, despite the success of Forza Horizon 5.
    4. Anxiety is growing among developers at Xbox Studios in the UK, with concerns about job security.
    5. These potential job cuts follow a previous layoff of 1900 jobs in January 2024, which were related to Microsoft’s acquisition of Activision Blizzard.


    There are many news reports about upcoming reductions in the Xbox Gaming division. Gamers are starting to understand the extent of these changes, which could kick off by the end of June. George Broussard, the person behind the Duke Nukem franchise, indicates that up to 2000 jobs at Microsoft might be at risk. Some studios could be completely closed, and the teams behind Forza Horizon and Forza Motorsport might also face difficulties.

    Job Losses Could Be High

    Broussard shared on social media that the potential job cuts might be larger than people thought. He believes that about 10-20% of the Xbox Gaming staff could be in danger. Even though other sources say the cuts might be lower than 10%, the gaming industry is bracing for another big shift.

    Future of Xbox Games in Question

    Fans are naturally curious about which developers might close and how this could affect future Xbox titles. Tom Warren from The Verge is one of the first to provide hints, mentioning that Turn 10 Studios could be in jeopardy. Given how popular Forza Horizon 5 is, it seems unlikely that this studio would shut down. However, Forza Motorsport hasn’t been as successful after some complaints about its technical problems and a lack of content.

    Anxiety Among Developers

    Even if Turn 10 manages to stay afloat, other studios might not be as fortunate. Andy Robinson, the Editor-in-Chief at Video Games Chronicle, has noted that there is worry among Xbox Studios in the UK. This area is home to well-known developers like Rare and Playground Games.

    Microsoft’s planned job cuts are not the first significant layoffs tied to Xbox. Back in January 2024, the company announced a reduction of 1900 jobs. However, those layoffs were mainly due to Microsoft acquiring Activision Blizzard. As Xbox Gaming focuses less on current consoles, the upcoming job losses could impact a broader range of developers.

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  • Microsoft Layoffs Expected to Affect Xbox Gaming Division Jobs

    Microsoft Layoffs Expected to Affect Xbox Gaming Division Jobs

    Key Takeaways

    1. Microsoft has announced 305 job cuts, adding to the previous reduction of about 6,000 employees, signaling a shift in focus towards software development over new console creation.
    2. Employee morale is declining due to uncertainty about potential further layoffs, causing anxiety about the company’s long-term strategies.
    3. The Xbox gaming division is facing job losses, particularly after the Activision Blizzard merger, with 1,900 positions cut in early 2024.
    4. Microsoft’s gaming strategy is shifting towards cross-platform publishing, allowing first-party titles on other consoles like the PS5, while competition from SteamOS intensifies.
    5. Plans for a new Xbox console remain uncertain, with a potential release for a successor to the Series X aimed for 2027, but there are ongoing developments with new controllers.


    Microsoft has recently declared 305 job cuts, following a significant reduction of about 6,000 employees back in May. The firm has not disclosed whether these layoffs affect the Xbox gaming division. However, Tom Warren from The Verge is now suggesting that further job losses at Microsoft could have consequences for gamers. This restructuring indicates a shift towards prioritizing software development over creating a new Xbox console.

    Falling Morale Among Employees

    Warren’s article highlights a concerning trend of declining morale among staff. The uncertainty surrounding the potential for additional layoffs is contributing to growing anxiety. Employees are left pondering the company’s long-term strategies and how these may influence their roles. Warren has heard that more unfortunate news could surface as early as the end of June. Unlike previous rounds of job cuts, the Microsoft Gaming sector might face substantial changes.

    Xbox Gaming’s Challenges

    The Xbox gaming division is not immune to layoffs, with most occurring in 2024 after the merger with Activision Blizzard. In January 2024, Phil Spencer announced the elimination of around 1,900 positions from a workforce of about 22,000. This reorganization involved Corporate Vice President of Gaming Mike Ybarra, who had been part of Microsoft since 2009.

    As Xbox re-evaluates its focus, it wouldn’t be shocking to see more job losses. Console sales have declined while Microsoft pivots towards cross-platform publishing. Now, gamers can access first-party titles even on Sony’s PS5. At the same time, with competition from SteamOS, Microsoft aims to enhance gaming on Windows devices. Asus is reportedly gearing up to launch an Xbox-themed handheld PC, similar to the ROG Ally.

    Future of Xbox Console Development

    Jez Corden from Windows Central indicates that Microsoft’s plans for a new Xbox console are currently uncertain. Nevertheless, a successor to the Series X is still in the works, aiming for a possible release in 2027. The company has not completely forsaken hardware, as there are rumors about three new controllers being developed. However, the shifting focus within Microsoft Gaming may shed light on why Tom Warren is predicting more layoffs.

    News about any unfavorable developments within Microsoft Gaming is not expected to be revealed until after the Xbox Games Showcase on June 8th.

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