Microsoft’s Xbox division is reportedly preparing for another round of layoffs and possible studio closures as the company approaches the end of its fiscal year on June 30, 2026.
The latest speculation comes from George Broussard, co-founder of the original 3D Realms and Apogee, who claimed that layoffs at ZeniMax could be announced very soon. In a post on social media, Broussard wrote, “I would expect news on Zenimax layoffs today (maybe Monday) but definitely very soon. It’s Friday and a holiday weekend and it’s typical to have the buffer of the weekend for a pr cycle.”
Broussard said discussions had been taking place at studio leadership level and suggested that some employees may not yet be fully aware of the situation. He added, “Things have been happening. GM’s of studios have been in meetings and told to keep things quiet.”
According to Broussard, financial performance is expected to play a major role in any restructuring decisions. He claimed that “Pretty much everything outside of Bethesda has lost money or barely broken even/made a little for a while” and argued that current management is focused primarily on profitability.
The comments follow reports that Xbox could be preparing a significant wave of layoffs and studio closures after newly appointed CEO Asha Sharma warned of a necessary “business reset.” Reports have suggested that several studios acquired during Microsoft’s expansion efforts in the late 2010s, including Ninja Theory, Double Fine, and Compulsion Games, could face uncertainty. Some studios are also reportedly exploring options to become independent or secure outside buyers.
When asked about id Software’s future, Broussard said, “I really don’t know what they will do. But also, id really isn’t id anymore. Just in name only. All the original founders and dna are long gone. I sort of see it as a ghost company.”
Microsoft has not publicly announced any new layoffs at the time of writing. The claims remain based on industry speculation and comments from sources outside the company.
