Story perspectives

Xbox Director Laid Off After Abuse Claims, HR Accused

6/30/2026

Summary

Glenn Israel Laidoff

Glenn Israel, Xbox director, says he was laid off in late 2025 after complaints.
He urges staff to record, note 60- to 300-day limits, and seek counsel.
Attorney Thomas Lenz says preserving abuse evidence is essential for retaliation claims.
Former staff claim HR ignored complaints and cut them off Microsoft systems after abuse reports.
An art director was hired a month after Israel’s termination despite his role being deemed unnecessary.

Summary

Microsoft Shutters Studios

Microsoft’s June 2026 Xbox memo blamed over-extension after the $69 billion Activision Blizzard King acquisition for layoffs.
The memo noted $89 billion studio investment, a $0.5 billion revenue decline, three 2026 console price hikes and that Satya Nadella earned $96 million in 2025 compensation.
It announced closures of Double Fine, Ninja Theory and Compulsion Games, which are expected to shrink Xbox’s development pipeline as profits fall.

Summary

Sharma Restructures Compulsion

Asha Sharma (Xbox restructuring lead) is heading the restructuring that has already prompted a dozen departures, including principal designers Mike Sklavounos and Thomas de Rego, from Compulsion Games.
Compulsion Games, acquired by Microsoft in 2018, released South of Midnight in April 2025 to reviews but weak sales.
Remaining staff posted on LinkedIn they stay for now while seeking jobs, with Bloomberg saying some studios may spin out while cuts are expected.

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Glenn Israel Laidoff

Glenn Israel, Xbox director, says he was laid off in late 2025 after complaints.
He urges staff to record, note 60- to 300-day limits, and seek counsel.
Attorney Thomas Lenz says preserving abuse evidence is essential for retaliation claims.
Former staff claim HR ignored complaints and cut them off Microsoft systems after abuse reports.
An art director was hired a month after Israel’s termination despite his role being deemed unnecessary.

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