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Black Ops 7, Forza Studios Impacted By Xbox Layoffs

The breadth and depth of Microsoft's latest layoffs continue to come into focus, as a report now claims that Call of Duty developer Raven Software and Forza Motorsport studio Turn 10 have been affected. This is in addition to the layoffs at Sea of Thieves developer Rare, Candy Crush studio King, and The Elder Scrolls Online developer ZeniMax Online Studios.

According to Bloomberg reporter Jason Schreier, "many" of the Xbox-owned game developers are facing layoffs due to Microsoft's broader push to cut 4% of its workforce globally. The cuts to Turn 10 are reportedly very significant, with "nearly 50%" of staff affected, Schreier said.

Raven Software is the main co-developer on Activision's upcoming Call of Duty: Black Ops 7 alongside Treyarch. Raven also works on Call of Duty: Warzone. Turn 10 Studios, meanwhile, is known for its work on the Forza Motorsport series, the latest entry of which came out in 2023 for PC and Xbox Series X|S.

In addition to cutting staff, Microsoft has canceled Rare's Everwild and an unannounced MMORPG from ZeniMax Online Studios. The new Perfect Dark game has been canceled, too, with its developer, The Initiative, closing up shop.

Microsoft Gaming CEO Phil Spencer claimed in a memo to staff that the cuts were necessary to propel Xbox forward to a healthy future. "Our platform, hardware, and game roadmap have never looked stronger," Spencer said in the wake of the cuts.

"We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities," he added. "We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come."

Xbox boss Matt Booty confirmed the cancellations of Perfect Dark and Everwild in a memo to staff seen by Windows Central, while also saying "several unannounced games" are being axed as well. Booty also confirmed The Initiative is closing up shop, and that all of these initiatives took place to "adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape."

Despite all of Microsoft's latest layoffs and game cancellations, Booty said Microsoft still has 40+ games in "active development" and a "strong slate" heading into 2026.

Xbox has been shedding staff on a semi-regular basis for the past few years. After Microsoft closed its deal to buy Activision Blizzard, it laid off around 1,900 people. An additional 650+ layoffs came later. In May 2024, Microsoft closed four studios that it acquired when it bought ZeniMax, including Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Games.