As reports of another set of mass layoffs at Xbox continue to make the rounds, several former employees are warning current workers to be prepared, claiming previous workforce reductions were sometimes used to target employees who reported workplace issues or challenged management.
The concerns were detailed in a report from Game Developer, which spoke with four former Xbox employees who described what they say was a recurring pattern across Xbox-owned studios. According to Game Developer’s sources, employees who filed complaints with human resources, served as witnesses in workplace investigations, or spoke out against alleged toxic behavior often found themselves laid off, placed on performance improvement plans, or pushed toward leaving the company.
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Among those speaking publicly is former Halo Studios art director Glenn Israel, who has previously accused studio leadership of harassment and retaliation. Israel told the publication that employees who have raised concerns internally should begin preserving documentation ahead of any future layoffs.
“Redundancy will be considered a retaliatory action,” Israel said while advising employees to keep records of communications and complaints.
Israel also urged workers to understand their legal rights if they are impacted by future cuts.
“If you are laid off, consult an attorney before signing anything and at the very least secure a document retention agreement,” he said.
The report comes as Xbox is set to lay off a number of employees as well as shutter multiple studios. While the company hasn’t publicly announced additional cuts, reports have suggested more restructuring could be on the horizon.
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Israel alleges he experienced retaliation firsthand. During his time at Halo Studios, he says he simultaneously filled three director-level positions across multiple projects and was recognized by Xbox with a special service award for the work. Despite that, he was laid off in late 2025. According to the report, his separation agreement stated that his art director position was no longer necessary.
Israel claims another Halo Studios employee was promoted to an art director role roughly one month after his departure.
Beyond Israel’s account, several anonymous former employees described similar experiences.
One source told Game Developer they were included in a major layoff after serving as a witness in an investigation involving a studio executive who allegedly berated employees during meetings. According to the source, the executive attempted to identify those who had participated in the investigation and later held influence over layoff decisions.
Another former employee described working under a supervisor they characterized as verbally abusive. After challenging that supervisor during a meeting, the employee said they were placed on a performance improvement plan for “disrespecting” management. The source claimed that subsequent complaints to human resources were ignored.
A third former employee alleged that leadership at one Xbox-owned studio routinely retaliated against workers who pushed back on workplace conditions. The source also claimed they witnessed retaliation against an employee who sought disability accommodations.
“If you show any signs of not drinking the Kool-Aid … we don’t want you anymore,” the former employee told the publication about the actions.
Microsoft did not provide a comment to Game Developer before the report was published. Insider Gaming has also reached out for comment.
Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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