The Microsoft layoffs that took place on July 2, 2025, will go down as another bad day for the gaming industry. We have seen The Initiative, Rare, Turn 10 Studios, ZeniMax, and Halo Studios all impacted by these layoffs. Another set of studios that were impacted by this were multiple Call of Duty development studios.

According to Insider Gaming, Raven Software and Sledgehammer Games were impacted by the Microsoft layoffs. The specific number of employees who were let go is unknown at this time, and what areas of the studios were affected.

Raven Software has been assisting Treyarch on the development of Call of Duty: Black Ops 7. While Sledgehammer Games is working on a future Call of Duty title.

Microsoft has not made an official statement regarding all studios that were impacted, but since there were thousands of jobs lost, it’s likely that all studios had some sort of hit.

What do you think about the future of Xbox?