An executive producer at Xbox Game Studios has been heavily criticized for recommending AI tools to recently laid-off workers in the games industry. On July 2, 2025, Microsoft announced significant layoffs that will affect approximately 4% of its workforce, or around 9,000 employees. These layoffs particularly affected its gaming divisions as Microsoft shuttered studios like The Initiative, canceled games like the Perfect Dark reboot and Rare's Everwild, and reduced headcount at other major developers under the Xbox umbrella, such as Forza Motorsport's Turn 10.

forza motorsport developer turn 10 studios layoff xbox microsoft 2025
Forza Motorsport Developer Reportedly 'Bracing' for Layoffs

Turn 10 Studios, one of Xbox's oldest first-party teams and the custodian of the Forza Motorsport series, is reportedly in line for imminent layoffs.

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According to VGC, the now-deleted post inspired a wave of backlash from industry professionals and former Microsoft employees affected by the layoffs. Eric Smith, a producer at ZeniMax Online whose project was canceled as part of the Microsoft layoffs, responded, "Read the room dude." "I'm sure you're trying to help, but WTF," Game Designer Paul Murphy replied. Murphy asked Turnbull to "give them the respect they've earned and assume they have the ability to write their own resumes."

After Mass Layoffs, Xbox Game Studios Producer Recommends AI To Former Workers

Matt Turnbull, Executive Producer at Xbox Game Studios Publishing - after the Microsoft layoffs - suggesting on Linkedin that may maybe people who have been let go should turn to AI for help. He seriously thought posting this would be a good idea. — Brandon Sheffield (@brandon.insertcredit.com) 2025-07-04T03:48:10.841Z

This recent mass layoff comes in the wake of another series of layoffs earlier in 2025, which cut the positions of 6,000 workers across the company. In 2023 and 2024, Microsoft laid off more than 10,000 employees. Including this most recent wave of layoffs, this adds up to more than 25,000 Microsoft employees who have been laid off since the beginning of 2023, many of whom were in Xbox Games Studios and other gaming divisions.

Turnbull's post comes off as especially tone-deaf because of Microsoft's recent push into AI and the threat that AI will replace many of these workers' positions. In 2025, Microsoft planned to spend more than $80 billion to build out its AI infrastructure, adding to the company's now more than $100 billion investment in AI.

In the last decade, Microsoft spent more than $100 billion to bring high-profile development studios under its umbrella, most notably Activision Blizzard, ZeniMax Media, Mojang, and Rare, all of which have been affected by this most recent wide-ranging series of layoffs across Microsoft. According to an internal email sent by Phil Spencer to Xbox staff, the cuts are intended to remove "layers of management to increase agility and effectiveness."

Microsoft
Microsoft
Date Founded
April 4, 1975
Headquarters
Redmond, Washington, United States
CEO
Satya Nadella
Subsidiaries
activision blizzard, Microsoft Studios, Mojang Studios, Microsoft Game Studios, Xbox Game Studios
Consoles
Xbox, Xbox One, Xbox 360, Xbox One X, Xbox Series X, Xbox Series X|S
Services
Xbox Game Pass