Romero Games Hit With Layoffs After Xbox Cuts Funding - News

by William D'Angelo , posted on 03 July 2025 / 1,554 Views

The massive Microsoft layoffs yesterday saw many Xbox subsidiaries see at least some layoffs with some seeing 100 or more people let go. It now looks like third-party developers that had deals in place with Microsoft have been hit as well as they lose funding.

Doom co-creator John Romero has been developing a new first-person shooter at his Romero Games studio, however, their funding has now been cut and they have been forced to lay off employees.

"We have some difficult news to share. Last night, we learned that our publisher has canceled funding for our game along with several other unannounced projects at other studios," said said Brenda Romero in a statement. "This was a strategic decision made at a high level within the publisher, well above our visibility or control. We deeply wish there had been something, anything, we could have done to prevent this outcome.

"This absolutely isn't a reflection of our team's work, performance, or the quality of the project itself. We hit every milestone on time, every time, consistently received high praise, and easily passed all our
internal gates. We are incredibly proud of the work being done, and of the talented team behind it. The best we've worked with.

"We're currently evaluating next steps and working quickly to support our team. Many of us have worked together for more than a decade, some for over 20 years. It's an extremely difficult day, and we're heartbroken that it's come to this. If you know of any opportunities or ways you can help our incredible team, please reach out. Thank you to everyone who's offered support and kindness and encouragement during this difficult time."

A number of employees have posted on LinkedIn they have been let go at Romero Games due to the funding cuts and are now looking for work.

"Good Morning Game Industry, It is with a heavy heart, I must bid farewell to Romero Games due to the Microsoft layoffs," said one former employee. "The last year has been amazing, as I had the chance to jump back into Unreal 5 and learn a great deal from John, Tom, and Seba while focusing on a mode in a game I was very proud to be a part of."

Another employee stated, "Unfortunately, I was affected by the recent layoffs from Microsoft and have lost my role as a Material and Texture Artist at Romero Games, a studio full of incredibly KIND, TALENTED, and INSPIRING people. It’s heartbreaking to see such amazing individuals, with whom I’ve built meaningful relationships and friendships, being treated this way by major corporations. No one deserves to go through something like this."

One employees even claimed the entire team is being let go due to the cuts.

"Today I found out our whole studio is being let go because of the layoffs at Microsoft," said the person.

A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.