Microsoft is continuing its streak of laying off its employees. This is especially apparent in its gaming venues. This recent layoff comes months after Microsoft closed four game studios: Alpha Dog Studios, Arkane Austin, RoundHouse Games, and Tango Gameworks. The four studios were subsidiaries belonging to Bethesda. Additionally, around 1,900 jobs were laid off from Activision back in January.

It should be of note that the Xbox Games layoff does not include any game development positions as it only focuses on the corporate and support functions. It came after the acquisition of Activision Blizzard in 2023 so the job cuts are due to Microsoft’s aim to integrate teams and save on resources.

Xbox Games Layoff: More companies are laying off game studios

Microsoft is not the only company cutting down jobs as companies such as EA (Electronic Arts), Sony Group Corp., and Take-Two Interactive Software Inc. have all partaken in shutting down huge projects. For instance, Sony withdrew Concord, a multiplayer video game a mere two weeks after the game was officially released. It has been said that Sony did not have the patience to wait around for the game to take off. The company might have expected an instant hit especially since it allocated a big budget towards Concord’s development.

Most of the time, budget cuts are the reason these bug companies go ahead with the job layoff. Most of the time, job security is not provided. Microsoft has stated that it would provide its laid-off US employees with exit packages to help them in their transition period. Exit packages may differ outside the US.

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The unionisation has been described as a ‘wall-to-wall’ union since it spans across several teams under the gaming company. Through this unionisation, Bethesda aims to protect its workers against any risks of layoffs.

Bethesda is following ZeniMax Media’s footsteps in forming a union. To elaborate, Bethesda is a subsidiary of ZeniMax Media, and the parent company formed a 300-worker union.

Bethesda has officially become the first game company under Microsoft to fully unionise. Besides Bethesda, other game companies such as Activision Blizzard and Sega of America have unionised.

Bethesda Game Studios: More on the gaming studio

The game studio was created in 2001 and is based in Rockville, Maryland, United States. The game studio became a subsidiary of ZeniMax Media in 1999. In addition, the parent company of Bethesda was acquired by Microsoft in 2021 for $7.5 billion.

Bethesda is responsible for creating iconic games and game franchises such as Starfield, Doom Eternal, Fallout, and The Elder Scrolls.

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