#layoffs

A July 16 r/Games post shared Aftermath’s report on former and current ZeniMax workers protesting Microsoft’s latest cuts outside offices in the U.S. and Canada.

A July 14 r/Games post shared Bungie’s reorganization layoff notice; the thread also cited reporting that most of the Destiny team and some Marathon staff were affected.

OneBGS said on r/Games that the latest Bethesda Games Studios layoffs were not just a management-layer reduction, but affected dozens of production staff tied to future games such as TES VI.

A Texas WARN notice lists 136 id Software-linked layoffs and 158 total ZeniMax cuts in the state, according to Game Developer.

Obsidian is moving onto a new Fallout project led by Josh Sawyer while Xbox cancels multiple projects during its wider reset, according to reports.

Microsoft’s July 6 Xbox reset moves Double Fine and Compulsion back to management as independent studios, while Ninja Theory and Undead Labs enter new-ownership terms. The Verge reports 4,800 Microsoft layoffs, including about 1,600 Xbox employees.

Ubisoft Barcelona workers plan six afternoon strikes from June 30 to July 16 after a restructuring plan targeted 51 employees, or 28% of the studio. The demands include job continuity, a five-year shield against collective dismissals, and 60% monthly work from home.

Insider Gaming reports that Ubisoft Winnipeg has shut down, with roughly 85 employees losing their jobs and multiple in-development projects affected.

According to journalist Jason Schreier, Bungie is planning a significant round of layoffs following the end of Destiny 2's active development. Destiny 3 is not currently in active production, and no new projects have been greenlit yet.

Cisco announced layoffs of nearly 4,000 employees on the same day it reported record quarterly revenue of $15.8 billion. The company cited a strategic shift toward AI infrastructure, with $5.3 billion in AI orders this fiscal year and a raised annual forecast of $9 billion.

Cloudflare reported a 600% surge in AI usage in Q1 2026 while simultaneously announcing layoffs of 1,100 employees (20% of workforce) as agentic AI 'fundamentally changes' the company's operations.

Cloudflare is laying off more than 1,100 employees globally, framing the restructuring not as cost-cutting but as a necessary redesign for the agentic AI era, with internal AI usage up 600% in three months.