By Eddie Makuch on

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Microsoft announced mass layoffs on July 2 impacting many areas of the company’s sprawling business, including Xbox. Overall, Microsoft is said to be cutting 4% of its staff worldwide, affecting about 9,000 people. Microsoft is an enormous company that employs more than 200,000 people globally.

The exact number of cuts at Xbox is unknown, but Microsoft has confirmed layoffs at multiple studios, game cancellations, and entire studio closures. Read on to learn more about all the cancelled games and studio closures as a result of Microsoft’s latest cutbacks.

Microsoft Gaming CEO Phil Spencer sent a memo to staff today addressing the cuts, claiming the job losses were necessary to allow for the “enduring success” of Xbox.

“We will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” he said.

Spencer also addressed the fact that the cutbacks are coming at a time when business is booming for Xbox. “I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger,” he said.

The success of Xbox today is the result of “tough decisions” Microsoft made previously, Spencer said.

“We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities,” he added. “We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”

Microsoft’s stock-price slid slightly after the layoff news was announced, but the price has been trending upwards in the past five years and currently stands at a near-record high. Microsoft is currently the No. 2 most valuable company on the planet, only behind Nvidia.

Raven Software

Raven Software

Raven Software, an esteemed Call of Duty development studio, is said to have been affected by the cuts. The studio co-developed 2024’s Black Ops 6 and returns to co-developer 2025’s Black Ops 7. Raven is also known for its work on Call of Duty: Warzone. The exact number or nature of the cuts at Raven is unknown.

Turn 10 Studios

Turn 10 Studios

Forza Motorsport developer Turn 10 Studios was reportedly hit significantly by the Xbox cuts. A report said nearly 50% of staff were let go, though it’s not clear how many people this amounts to. The studio’s last release was 2023’s Forza Motorsport for PC and Xbox Series X|S.

Rare and Everwild

Rare and Everwild

British developer Rare was affected by the layoffs, too, with the studio’s upcoming game Everwild canceled.

The game was announced in 2019 and had been in development for reportedly 10 years before this decision came down. Anonymous developers speaking to VGC said that Rare couldn’t find the right direction for this project, even after it was rebooted.

A new MMO

A new MMO

A new MMORPG from The Elder Scrolls Online developer ZeniMax Online Studios, reportedly codenamed Blackbird, was said to be canceled. It had reportedly been in development in some form since 2018.

Perfect Dark and The Initiative

Perfect Dark and The Initiative

High Moon

High Moon

Longtime Call of Duty co-developer High Moon Studios has been affected by the Xbox cuts, too, according to Charlie Intel. The studio has, for years, supported Call of Duty: Warzone and other Call of Duty projects.

Sledgehammer Games

Sledgehammer Games

Another Call of Duty co-developer, Sledgehammer Games, has faced layoffs as part of the wider cuts at Microsoft. That’s according to Charlie Intel and Insider Gaming.