Xbox CEO Asha Sharma announced the elimination of 1,600 roles today as part of a broader plan to cut 3,200 positions across the division over the fiscal year, with specific hits reported at Bethesda, ZeniMax Online Studios, Obsidian, and id Software.

LinkedIn posts and reporting confirm departures at Bethesda including producers, designers, and community managers, while ZeniMax Online Studios saw its Elder Scrolls Online team reportedly halved in places. Obsidian lost between 60 and 70 staff, roughly 25 percent of the studio, affecting roles from art directors with two decades tenure to recent hires. id Software reportedly lost the majority of its coders along with an estimated 95 developers total, a development that lands as new Doom content arrives.

Microsoft is also divesting Double Fine, Compulsion Games, Ninja Theory, and Undead Labs while Arkane Lyon enters consultation; the moves follow last year's cuts and a voluntary retirement program. Remaining teams receive little immediate clarity on project roadmaps, particularly at ESO where forum posts noted shifting plans.

The quarterly results memo and subsequent staff disclosures paint a picture of ongoing restructuring timed to the start of Microsoft's fiscal year, with no public update yet on how surviving headcount will absorb the workload.