Today Microsoft laid off 1,600 people from its games division—roughly the same number it unceremoniously showed the door last year. As part of this, the company is cutting loose four studios either via independence or new ownership, with one more, Arkane, now in a period of required consultation due to French labor laws. But that still leaves over a thousand on the chopping block today with an additional 1,600 in the coming year. Workers are overwhelmed, disheartened, and unsure how anyone could make good video games under these conditions.
Current and former employees who spoke to Aftermath anonymously, as they were not authorized to speak publicly, identified several places where the scythe struck grievous blows: Zenimax (which includes Starfield and Elder Scrolls maker Bethesda Game Studios), Doom mainstay id Software, the quietly ultra-prolific Obsidian, and Activision. Zenimax, according to several, has seen many teams halved (or more), leaving the future of Elder Scrolls Online in flux. Bethesda Game Studios, meanwhile, has lost dozens of employees. In Zenimax and BGS’ case, especially, LinkedIn posts paint a grim picture, with over 50 publicly saying that they’ve lost their jobs since the day began. Some worked there for only a couple years; others nearly 20.
It’s noteworthy that Zenimax’s QA department, Zenimax Online Studios, and BGS all have unions—only the first of which has so far managed to secure a contract. While unionized workers have managed to avoid layoffs in previous years (especially 2024), they were not so fortunate this time around, with multiple organizers and unionized workers to whom Aftermath spoke saying they’d been pulled into brief group meetings and let go.
The BGS union took to Bluesky to post a statement railing against Microsoft’s long history (and apparent future) of cuts:
In what is becoming a stressful annual routine, Microsoft has decided to lay off thousands, including MANY of us at Bethesda Game Studios. With over 10k developers already cut from previous rounds, those at the top have deemed that insufficient in fixing their mistakes.
Today we say goodbye to many of our friends and colleagues and to hundreds more across Xbox, including folks that have worked at Bethesda Games Studios for decades. When will this cycle of cuts in pursuit of ever-greater profits end?
Because of our One BGS union, we have the right to negotiate over the impacts of these layoffs, helping secure stronger severance packages and better support for those leaving the company. We will do everything we can to make sure our friends are properly taken care of.
id also finds itself against the ropes, with one current employee saying the studio was “severely” impacted, while a former employee told Aftermath that it had been “obliterated.” The exact scope of layoffs at Obsidian is difficult to discern, but the number seems high proportionately speaking—an assessment once again born out by LinkedIn, with over 20 saying that their jobs have been eliminated today. Similar to Zenimax and BGS, experience levels run the gamut. One engineer started at Obsidian a couple months ago; a now-former Obsidian artist, Daniel A, had been with the studio for 21 years.
“Obsidian wasn't just a workplace, it was where I built a career, formed lasting friendships, and had the opportunity to work alongside some of the most talented and passionate people in the industry,” he wrote. “We are clearly at a turning point in the games industry. These past months have been difficult for so many talented people, and unfortunately, it seems the challenges aren't over yet.”
Activision, according to a current employee who’s been tracking emails and Slack posts, lost close to 100 employees today, while Blizzard, according to multiple current employees, appears unaffected for now. This means that Blizzard’s biggest unions, which do not yet have contracts and could therefore potentially strike, are, at the moment, in the clear.
That, however, did not stop the World of Warcraft union from posting a statement of its own:
As the gaming industry shrinks, Microsoft Gaming is uniquely positioned to take responsibility for the pressures it created and agree to much-needed job security measures for game workers.
Disappointingly, leadership has instead decided once again that their mistakes should be paid for by the workers.
We stand in solidarity with our colleagues at Compulsion Games, Double Fine Productions, Ninja Theory, Undead Labs, id Software, Bethesda Game Studios, Zenimax Online Studios, and all other affected studios.
Those who remain employed face a challenge that is hardly unique but continues to worsen: With teams cut to the bone, how can developers be expected to bear the weight of a triple-A video game production? But now Microsoft has lobbed a terrible new curveball at their un-helmeted heads in the form of 1,600 additional cuts to come… at some point. Will they happen gradually or all at once? Next week? Next month? Next year? Microsoft has not provided specific details. Developers, for the time being, will just have to wait and see.
“It was already excruciating [to wait] over the long weekend—which made it impossible to relax,” one current Blizzard employee told Aftermath. “Now we have it indefinitely, and nobody knows who it will hit.”
“I’ve worked in roofing, construction, insulation, house building, glass factories, pallet shops, group homes for disabled and violent adults, gas stations, food service, customer service, and jobs involving gas meters,” said a current Activision employee. “Out of every industry I’ve worked in, I have never struggled financially or mentally as hard as I have working here.”
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Chris Person
