Xbox has announced the loss of 1,600 jobs as part of a broader 20% workforce reduction totaling 3,200 staff. Confirmed cuts include roles at Bethesda's Montreal, Austin, and Maryland offices, with Bloomberg reporting significant layoffs also at ZeniMax Online Studios and id Software. Five studios are being divested: Double Fine and Compulsion Games become independent, Ninja Theory and Undead Labs are being acquired, and Arkane Lyon has entered a French employment law consultation process. The cuts coincide with the start of Microsoft's new financial year.
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