Gears of War: E-Day Studio Fears Layoffs, Demoralized by Story Director’s Departure – Rumor

The Coalition's developers are reportedly "unhappy" and "on edge" given recent events, and even skeptical about receiving bonuses.

Posted By | On 01st, Oct. 2026

gears of war e-day

If the recent reorganization at Xbox has proven anything, it’s that no one is safe, especially when the division is aiming to return to profitability by 2027. And if the recent departure of Gears of War E-Day story director Juan Vaca ahead of launch has done anything, it’s instilled doubt in The Coalition that they could be next.

Sources speaking to Eurogamer noted that despite mass layoffs, the studio felt it was safe given the relatively hands-off approach by Xbox leadership and how successful the Gears of War franchise has been. Nevertheless, it was still reportedly “cautious,” especially with 1,600 layoffs still to be doled out last July. So while it wasn’t “full death-march” in terms of energy, “The mood is certainly ‘let’s not celebrate the game until we’re three months post launch, just in case’, which is very unusual.”

Vaca’s departure, alongside other developers who were “quietly” let go, seemingly changed all that. It was described as “very demoralizing” with one source stating, “I can only imagine the heartbreak of spending all those years on a game to have the final stretch ripped away, completely out of your control. It’s like you planned for a year on a meal for your family where everyone will be there and the day of, you get locked out of the building or something and can’t join in.”

It’s also made other developers “unhappy” and “on edge.” “Because we honestly expected the layoffs to hit us post-release, but that seems to not matter now. Now we’re just expecting the next wave, or being reorganised under Activision or something later this year.”

There are also concerns about whether Microsoft will reportedly pay out bonuses tied to the game’s Metacritic score, seemingly by the end of October. While Eurogamer reports hearing that Vaca and other laid-off developers will receive the same, The Coalition is reportedly not sure if this will apply if they’re made redundant after launch. There’s also reportedly scepticism about whether Vaca will receive his bonus.

As one source noted, “It’s hard to believe anything [Microsoft leadership] say anymore after discarding staff in this manner.” Another said, “There was a general perception here that we’re in a relatively secure spot, despite everything in the industry. But now that feeling is up in the air.” The fact that team has allegedly been crunching in the past few months on E-Day only makes things that much more dour.

Gears of War: E-Day launches on October 6th for Xbox Series X/S and PC, but advanced access will become available today for Premium Edition owners. In the meantime, reviews will go live at 6 AM PST today, so stay tuned for more details.


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