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Recent Xbox Layoffs Reduces Forza Motorsport Team To A Support Studio, Focusing On The Horizon Spin-offs

In recent time, the Xbox brand has been hit dramatically in the crossfire of the latest Microsoft layoffs. In the debris, it was uncovered that both Call of Duty as well as Halo has been hit by the string of firings for the Xbox firm. Additionally, projects like Rare’s Everwild is no more also. In tangent, Video Game Chronicle reports that veteran developer Gregg Mayles is to exit the firm in response to this decision.

As for other tragic reveals from this recent motion by Microsoft, it was also announced that ZeniMax Online Studios president Matt Firor is to also depart after the layoffs shelved its new Project Blackbird title. Additionally, the Perfect Dark reboot is no more following the Xbox layoffs as well. The Initiative, a collection of industry veterans based in Santa Monica, closed its doors as a result.

Now atop of the recent list of bad news for Xbox, a new development has surfaced for one of the platform’s most recognized IPs. In that, Forza Motorsport appears to be no more. That is according to former employees at Turn 10 Studios. Insider Jason Schreier reported on Bluesky that the studio was hit with about 50 percent of staffing let go.

Many of Xbox's subsidiaries are getting hit by the layoffs this morning, including Call of Duty studios such as Raven. Big cuts at Forza Motorsport developer Turn 10 – nearly 50% of staff, per source.

Jason Schreier (@jasonschreier.bsky.social) 2025-07-02T16:43:19.681Z

Uncovered via a Facebook post, former Turn 10 Studios content coordinator Fred Russell shared the details on the matter – stating the team responsible for the Forza Motorsport franchise has been dismantled. “Turn 10 Studios has shuttered the Forza Motorsport space and the team is no more.  A very sad day for one of the best car racing video games.” In a separate post, Russell says, “the studio is open to support the Horizon side… shuttered the Forza Motorsport dis only.”

What does not help is the recent 2023 reboot Forza Motorsport did not perform extremely well. And while the IP holds a legacy that stands for over two decades, much of its legacy is not accessible – even on Xbox. In that, the titles for the Forza Motorsport titles are delisted from its storefront with the latest Forza Motorsport 7 being removed back in 2021.

As for the matter of Forza Horizon, it is not surprising the latter series is to remain. The title did just ship on PlayStation 5 this past spring with a glowing response. It was reported that the new version sold at least 2 million units already. You can read the full report by heading here.

Are you shocked by this new development for Turn 10 Studios?

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