Obsidian Entertainment, the Xbox first-party studio behind games including The Outer Worlds, Avowed, and Grounded, is reportedly cutting roughly a quarter of its workforce as part of Microsoft’s broader gaming layoffs. Multiple outlets say the reductions affect employees across a range of roles rather than a single team or discipline. Kotaku reports that impacted positions span all disciplines and include staff with long tenure at the company. Push Square, citing reporting from Kotaku, says the studio-specific layoffs involve approximately 60 to 70 employees, described as around 25% of Obsidian’s workforce. The layoffs were not highlighted in earlier coverage of the broader job cuts, according to the accounts summarized by Push Square. Microsoft’s overall layoffs are described as involving thousands of workers across its gaming brand, with Obsidian among the studios affected. The reporting indicates that details about which positions and teams are impacted are still emerging, but the shared consensus across sources is the scale of the reduction and Obsidian’s approximate share of the workforce being let go.