Earlier this week, a rumor emerged about Microsoft laying off employees from its Xbox division as part of a “company-wide” restructuring. According to sources speaking to The Verge’s Tom Warren, there will be “significant layoffs” at Microsoft Gaming and Turn 10 Studios, the developer of Forza Motorsport fame, which is “bracing for cuts.”
The report follows a Twitter post by 3D Realms founder and industry veteran George Broussard, who reported that “entire studios may be shuttered.” The layoffs will allegedly affect 1000 to 2000 people, which is about 10 to 20 percent of the Xbox division.
While Microsoft has yet to confirm impending cuts, it laid off three percent of employees across all departments worldwide earlier this year. There were also cuts last year following the acquisition of Activision Blizzard, with studios like Tango Gameworks, Arkane Austin, and Alpha Dog Games subsequently shuttered.
Cuts at Turn 10 Studios may sound odd, especially with a new Forza coming next year. However, after the disappointment of 2023’s Forza Motorsport, Microsoft could instead focus on the next Forza Horizon. Time will tell, so stay tuned for updates.
