DATE: THURSDAY, OCTOBER 1, 2026
★ SPECIAL PRINT EDITION ★
SECTION: GAMING
Gears of War: E-Day Studio Fears Post-Launch Layoffs Amid Ongoing Microsoft Restructuring

Gears of War: E-Day Studio Fears Post-Launch Layoffs Amid Ongoing Microsoft Restructuring

Oct 01, 2026 - 20:31
Gears of War: E-Day studio reportedly fears post-launch layoffs and Microsoft withholding bonuses
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Key Highlights

  • 3,200 jobs to be cut.
  • Post-release bonuses at risk.

As E-Day approaches, Microsoft's flagship Gears of War franchise is poised to arrive. However, behind the scenes, developer The Coalition is grappling with an uncertain future.

The studio, long regarded as a model of stability within the Xbox ecosystem, is now bracing for the worst following a mass layoffs that have seen hundreds of roles severed across the various studios under Xbox's umbrella since July. The impending game's release has only heightened anxiety among team members, who fear their own job security is at risk.

According to a report from Eurogamer, a number of staff at The Coalition are anxious about the coming weeks amid ongoing layoffs across Microsoft's games wing. CEO Asha, Sharma stated. that a total of 3,200 jobs would be let go over the course of a harsh restructuring process.

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"We honestly expected the layoffs to hit us post-release, but that seems to not matter now," says one developer. "Now we're just expecting the next wave, or being reorganized under Activision or something later this year."

Anthony McGlynn
Anthony McGlynn

Concerns are mounting that job losses at Microsoft may come with a lasting financial impact. As laid-off employees may forfeit post-release bonuses tied to the game's critical reception. Industry insiders speculate that the company's actions may be seen as a cynical move to minimize payouts.

With some questioning the corporation's commitment to its most valuable employees.

Also Read: Blood of Dawnwalker Player Refuses to Quit Amid Game's Ongoing Crashes

The Coalition has plans for five seasons of updates post-launch for E-Day, including celebrating the property's 20th anniversary in November. Gears of War: E-Day devs want to be known for "all the things that made Gears resonate in the first place," without "looking outside at other franchises".

At the time of writing, Gears of War: E-Day has debuted to a Metacritic score of 87. Sadly, all anyone can do is see what happens in the coming weeks.

Sonic Unleashed is a particularly strong request, Takashi Iizuka notes
Sonic Unleashed is a particularly strong request, Takashi Iizuka notes

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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.

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