Xbox Ending Contracts With Third-Party Vendors Ahead Of Studio Layoffs

Things are already in motion for what’s expected to be the largest single group of job cuts in Xbox’s 25-year history. With Microsoft’s fiscal year coming to an end on Tuesday, June 30, plans are already in place to cut costs and lay off hundreds of employees in the coming weeks.

One of those plans involves third-party vendors.

Xbox Is Cutting Back On PR

According to Bloomberg’s Jason Schreier, the company is ending various contracts and cutting its vendors. One such vendor appears to be its long-time PR firm, Assembly.

Schreier reports that Assembly is letting people go today. How many, however, is currently unknown. It’s also unknown if Xbox is completely ending its relationship with Assembly, or if it’s just cutting back on its needs.

Assembly was one of the firms Xbox has used for PR over the years. It also uses different firms for subsidiaries like Activision Blizzard and Bethesda, among others.

Assembly has not made any public statements on the layoffs. Microsoft also has not commented on the contracts it’s ending, nor have they confirmed any of the layoff reports. That said, with the new fiscal year starting on Wednesday, it could only be a matter of days before there’s something official from the company.

What do you think of what’s shaping up to be a dark time for Xbox and its employees? Leave your thoughts in the comments below, or join the discussion in the official Insider Gaming Discord.

In other news, read about the latest on the pending closure of Compulsion Games at Xbox. And for even more Insider Gaming delivered directly to your inbox, sign up for our newsletter.