Obsidian Shrinks by a Quarter as Xbox Layoffs Hit Studios
Obsidian Entertainment, the studio behind The Outer Worlds and Avowed, is reportedly cutting about 60–70 jobs—roughly a quarter of its staff—as part of Microsoft's broader Xbox layoffs that total around 3,200 roles. The first wave hit Obsidian, with more cuts expected later this year, affecting roles across disciplines and even senior staff like the art director and the studio’s recruiter. Grounded 2 will continue, and Obsidian is slated to deliver more The Outer Worlds 2 DLC, though future projects remain uncertain. Obsidian was acquired by Microsoft in 2018 and has since released several titles.
