Further Cuts in the Future of XBOX: Is the Zenimax Case a Reflection of Microsoft's Gaming Division?

The reorganization of XBOX continues, and Zenimax and Bethesda are also involved, with the risk of new layoffs being at the center of some rumors this week. The change in leadership was just the first step of a more elaborate program aimed at transforming the gaming division, making it more productive and capable of generating revenues sufficient to justify past investments.

The price cut of the Game Pass and the intention to close some development studios are just the first moves of a more complex program. The transformation is ongoing, and the upcoming changes could be varied.

New Layoffs on the Horizon?

Many of the upcoming changes for XBOX that we have discussed in recent weeks are based on rumors and leaks that are still awaiting official confirmation. The latest news follows this trend. According to a new rumor, in fact, a wave of layoffs at Zenimax has reportedly begun, which consists of the following development teams: Bethesda Game Studios, Zenimax Online Studios, id Software, MachineGames, and Arkane Studios.

Getting word that layoffs at Zenimax has begun. Heard rumblings recently that the cuts may be much deeper than you expect. Buckle up! — George Broussard (@georgebsocial) June 17, 2026

In recent days, no further information has emerged, but it is clear that the situation at Zenimax is a reflection of the current reality of XBOX, grappling with a transformation program that involves cost-cutting and a new strategy. Additional information will surely emerge on the matter in the coming weeks. The transformation of XBOX continues, and the news, whether positive or negative, will not be long in coming in the near future.