Xbox developers are facing ruin because success at parent company Microsoft is no longer a criterion for employment. A new report reveals the systematic dismantling of trust and job security at Microsoft studios.
Performance does not protect against dismissal.
The recent wave of layoffs at Xbox is hitting teams that, until recently, were considered prime examples of economic success. Despite the record-breaking launch of "Doom: The Dark Ages" with over three million players, id Software laid off significant portions of its workforce immediately after the release of the Revelations expansion. Microsoft didn't even wait for the sales figures of the add-on. One affected developer dryly commented on the logic: "They didn't even wait to see if the product was successful before firing the team."
Similar reports are emerging from ZeniMax Online Studios. After switching to a seasonal model, "The Elder Scrolls Online" delivered stable figures that were praised by management. Nevertheless, large-scale layoffs followed. The message to the workforce is clear: good work no longer guarantees job security. "It feels like we've delivered a good product – and yet that has absolutely no impact on how long you keep your job," "That's what one employee told The Game Developer."
The dehumanization of internal communication
The physical reduction of the workforce is accompanied by an unprecedented collapse of internal communication. Layoffs were handled in anonymous mass video conferences where cameras, microphones, and chat functions were disabled. Questions were not permitted.
Following terminations at a rapid pace, accounts were immediately blocked. Those affected lost access to Slack and email. Inquiries were to be directed to internal email addresses to which no one had access anymore. “Many of us didn’t know what was happening for weeks.”, describes one of those affected by the chaos.
The distribution of the job cuts exacerbates the situation for the remaining employees. Of the planned 3.200 layoffs, 1.600 will take place immediately. The remaining 1.600 positions will be eliminated gradually until mid-2027. This creates a climate of constant fear. "I don't know how anyone at Xbox Studios can feel safe when another 1.600 layoffs are imminent," According to an insider, the fear of the next wave next summer is paralyzing long-term production. Internally, a third round of decimation is already considered a certainty.
Microsoft isn't restructuring, it's downsizing according to rigid Excel spreadsheets. For gamers, this means a loss of continuity and quality in their favorite franchises in the medium term. Companies operating under the constant fear of the next wave of layoffs don't produce masterpieces. Trust is gone.
