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Microsoft is rumored to cut up to 2000 Xbox Gaming jobs, with Forza Motorsport and potentially Horizon studios impacted

Turn 10 Studios and Playground Games logos (Image source: Turn 10 Studios, Playground Games)
Turn 10 Studios and Playground Games logos (Image source: Turn 10 Studios, Playground Games)
Gamers may see future first-party Xbox games developed by fewer studios. Microsoft appears ready to cut up to 2000 Xbox Gaming positions. Turn 10 and Playground Games, the developers of Forza Motorsport and Forza Horizon titles, could soon feel the impact of the layoffs.

There have been several recent reports of upcoming cutbacks impacting the Xbox Gaming division. Now, gamers are beginning to learn about the scope of the changes, which could start by the end of June. Duke Nukem series creator George Broussard suggests that up to 2000 Microsoft jobs are on the chopping block. While some studios could shut down completely, the makers of Forza Horizon and Forza Motorsport may also suffer.

Broussard revealed on social media that the job losses may be more significant than expected. He estimates that 10-20% of the Xbox Gaming workforce is under threat. Even if other information suggests the number would be below 10%, the industry is preparing for another dramatic shakeup.

George Broussard Xbox layoffs rumor (Image source: screenshot, George Broussard X account)
George Broussard Xbox layoffs rumor (Image source: screenshot, George Broussard X account)

Naturally, fans are wondering which developers may shut their doors and how this could impact future Xbox games. Tom Warren of The Verge is providing one of the first clues, reporting that Turn 10 Studios is at risk. Given the continued popularity of Forza Horizon 5, it seems unlikely that its Playground Games studio would close. However, Turn 10's Forza Motorsport did not achieve the same level of success following initial complaints about technical issues and a lack of content.

Even if a downsized Turn 10 and Playground Games survive, other developers may not be as lucky. The Video Games Chronicle Editor-in-Chief, Andy Robinson, is describing anxiety among UK Xbox Studios. This region is home to prominent game makers besides Playground Games, including Rare and Ninja Theory.

The cutbacks in Microsoft jobs wouldn't be the first major round of Xbox-related layoffs. In January 2024, the company announced the loss of 1900 positions. Still, these changes were mostly a result of Microsoft's acquisition of Activision Blizzard. As Xbox Gaming shifts its priorities away from existing consoles, the upcoming dismissals could affect a wider range of developers.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2025 06 > Microsoft is rumored to cut up to 2000 Xbox Gaming jobs, with Forza Motorsport and potentially Horizon studios impacted
Adam Corsetti, 2025-06-26 (Update: 2025-06-27)