Microsoft Layoffs Hit Forza Motorsport as 50% of Turn 10 Studios Staff Let Go

July 5, 2025 | Redmond, WA – The future of one of Xbox’s longest-running racing franchises, Forza Motorsport, is now uncertain following major staff reductions at its developer, Turn 10 Studios. As part of Microsoft's sweeping July 2025 layoffs, nearly half of Turn 10's workforce has been laid off, raising serious concerns about the continuation of the series.

Microsoft Layoffs 2025 Impact Turn 10 Studios Severely

On July 2, 2025, Microsoft announced company-wide layoffs impacting around 9,000 employees. Approximately 2,000 of these were from the Microsoft Gaming division, including Xbox Game Studios. Among the hardest hit was Turn 10 Studios, which reportedly lost over 70 staff members—close to 50% of its development team.

This reduction significantly disrupts operations at Turn 10, best known for its work on the Forza Motorsport franchise, which was recently rebooted in 2023.

Uncertainty Surrounds Forza Motorsport Development

While Microsoft has not officially announced the cancellation of Forza Motorsport, multiple sources within the industry indicate that ongoing development has effectively ceased. Fred Russell, a former Turn 10 developer, stated publicly that the Motorsport team has been “dissolved,” with remaining staff expected to be reassigned to other projects under Microsoft’s Xbox division.

The 2023 version of Forza Motorsport was intended to be a live-service platform with regular content updates. However, post-launch support has been minimal, and with half the team now gone, future updates appear highly unlikely.

Shift in Focus to Forza Horizon and Fable

Microsoft’s strategic direction appears to be shifting toward its more commercially successful and broader-appeal titles. Turn 10’s remaining team members are expected to support Playground Games on upcoming titles such as the next Forza Horizon and Fable, both of which use the proprietary ForzaTech engine.

Forza Horizon, with its open-world format and arcade racing elements, has continued to perform strongly across global markets and enjoys consistent community engagement. This may explain the company’s preference for reallocating resources toward that franchise.

Community Response and Industry Reaction

The news has sparked disappointment among Forza Motorsport fans, many of whom had high expectations after the series’ reboot in 2023. Forums and social media platforms were filled with concerned messages, with players expressing frustration over what appears to be the quiet shelving of a cornerstone franchise.

Analysts note that this is indicative of broader industry trends, where studios are increasingly shifting away from niche simulation genres in favor of titles with higher monetization potential and wider player reach.

No Official Cancellation, but the Future Remains Unclear

Despite growing speculation and insider confirmation of major layoffs, Microsoft has not formally declared the end of Forza Motorsport. However, with the team effectively dismantled and no public update or content roadmap in place, many believe the franchise has already run its final lap.

If so, Forza Motorsport (2023) could go down as the final installment in a franchise that helped define simulation racing on Xbox consoles for nearly two decades.

The layoff of 50% of Turn 10 Studios staff marks a critical moment for Xbox’s racing game portfolio. While Forza Horizon looks set to continue thriving, the future of Forza Motorsport remains in serious doubt. Without a development team or clear direction, the once-celebrated sim-racing series may quietly fade into gaming history.

Microsoft has yet to comment officially on the status of the franchise.