Layoffs articles

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Xbox lays off 268 more people as Activision takes over Halo and Bethesda absorbs Obsidian

In a nutshell: The next round of Microsoft's previously announced layoffs includes major studio consolidations and possibly more closures. The Halo franchise just got its biggest shakeup in years as the Xbox manufacturer seeks to cut costs and the number of moving parts. Meanwhile, the fates of Ninja Theory and Arkane Lyon hang in the balance.
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Zuckerberg's bold plan to replace Meta employees with AI has imploded

Meta explored 60% team cuts in two waves before staff revolt forced a retreat
A hot potato: Meta set out to reorganize much of its workforce around AI at the beginning of this year, betting that agents could help the company move faster while reducing the need for larger teams. The company went ahead with 10% workforce cuts in May but ultimately dropped plans for a broader round of layoffs after its AI workplace "overhaul" ran into employee resistance and technical problems.
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This $10 bundle of 100+ DRM-free games means to support laid-off game developers

The collection includes titles like A Short Hike, Eldritch, and Holedown, with more being added through August 13
Why it matters: The video game industry has seen a historic wave of layoffs in recent years, with thousands of workers impacted in the last few weeks alone. To support some of the developers affected, indie game storefront itch.io is collaborating with an industry union to sell a collection of over 100 heavily discounted games.
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Microsoft is cutting 3,200 Xbox jobs and spinning off four game studios

Cutting corners: The first wave of massive layoffs that Microsoft teased several weeks ago has arrived. Most of the losses will hit the Xbox division over the next year as the company consolidates its gaming strategy. Microsoft will spin off Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while Arkane enters labor negotiations. Bethesda, ZeniMax, id Software, Activision, Obsidian, and Microsoft's accessibility team will all see deep cuts.
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The AI boomerang effect: more data suggests employers are reversing AI layoffs

Studies find up to 50% of companies that replaced workers with AI are rehiring or expressing regret
Connecting the dots: Generative AI has been blamed for hundreds of thousands of layoffs over the past year, but evidence that companies moved too quickly to automate white-collar jobs is steadily mounting. Multiple recent studies suggest that many employers are refilling recently eliminated positions after overestimating AI's productivity gains and cost savings.