The rumor making rounds from credible industry sources (like The Verge) reveals that Turn 10 Studios, the acclaimed developer of the iconic Forza Motorsport franchise, is apparently laying the groundwork for massive layoffs. The speculated layoffs are said to happen as early as next week, and this is a troubling trend within the world of video games.
This news follows a general trend of restructurings across Microsoft, Turn 10’s parent company. Recent reports from the technology giant detail plans to eliminate several thousand sales positions by July 2025, in favor of a strategic move towards outsourcing this work to third-party companies. The planned reductions at Turn 10 are reported to be part of a larger restructuring process in Microsoft’s gaming unit, Xbox, that may result in between 2,000 and 20 percent of its overall employees, estimated at 10 to 20 percent, being affected.
Timing the theoretical layoffs in suspicious light, especially amidst the performance of the newly launched Forza Motorsport in October 2023. As much as the game tried to revive the series for simulation racing games, its performance has been labeled as lukewarm by fans and reviewers alike, especially when pitted against the runaway commercial and critical success of its open-world counterpart, Forza Horizon 5. This differential performance is largely hurled as a leading cause of this present atmosphere of uncertainty and skepticism at Turn 10 Studios.
If this is the case, the upcoming layoffs would be part of a larger trend of consolidation and reassessment for high-end gaming publishers. The gaming industry is ongoing, and even venerable, established studios with recognizable brands are not immune to strategic realignment based on project performance and company goals. What is happening at Turn 10 should serve as a chilly reality check to the ongoing pressures and changes in the video game development competitive landscape.
