Kait (Laura Bailey) looks out on the aftermath of the Locusts’ latest attack in Gears 5 (2019), Microsoft
According to a new report, a purported shift in their business operations has led Xbox parent company Microsoft to completely eliminate one of their internal ‘Diversity, Equity, and Inclusion’ teams.

Joanna Dark (TBA) is looking a little bland in Perfect Dark (TBA), Xbox Game Studios
As revealed by Business Insider on July 15th, the unspecified DEI team was let go at the beginning of the month, with Microsoft citing “changing business needs” as the reason for their pink slipping.

At current, it is unknown exactly how many total employees will ultimately be affected by this change.

While the eliminated team members were understandably unhappy with this decision, one now-former team head voiced their frustrations directly to not only Microsoft’s leadership, but also the thousands of employees who were also included in the announcement email chain.

Decrying the company’s supposed lack of investment in such DEI initiatives, the unidentified employee lamenting the apparent fact that “true systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020.”

Indiana Jones (Troy Baker) explains the adventure’s titular subject to Gina Lombardi (Alessandra Mastronardi) in Indiana Jones and the Great Circle (2024), MachineGames
However, despite the closure of this particular team, Microsoft says they’re still committed to fostering diversity and inclusion within their ranks.

In a statement provided to Business Insider, Microsoft spokesperson Jeff Jones asserted, “Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering and we are holding firm on our expectations, prioritizing accountability, and continuing to focus on this work.”
A Constellation pilot takes to the skies in Starfield (2023), Bethesda
As noted by the economic news outlet, Microsoft is but the latest US-based tech giant to reverse course on their previously established DEI programs.

Throughout 2023, both Google and Facebook began reducing their DEI investments both internal and external, cutting their own programs and even ending contracts with third-party consultancy agencies.

In February 2024, video meeting app Zoom completely axed its internal DEI division in favor of engaging with “all of our employees” in service of creating a more welcoming and inclusive work environment.

Cortana (Jen Taylor) stumbles upon a firewall in Halo 4 (2012), Microsoft Studios
And though the elimination of this particular DEI team represents a seeming positive turn in the company’s operations – after all, identity politics only serves to sow further division – it should be noted that their elimination represents yet another massive staffing shake-up for Microsoft.

As previously reported, in 2024 alone, Microsoft has already undertaken two rounds of video game-related layoffs.

In January 2024, out of deference to shrinking profit projections for the coming year, Microsoft axed a rough total of 1,900 positions across their Activision Blizzard, Xbox, and ZeniMax studios.
Lifesaver (Phuwin Tangsakyuen) attempts to heal in Overwatch 2 (2022), Activision Blizzard
Then, in May, the company shuttered the Bethesda subsidiary studios Arkane Studios and Tango Gameworks, the pair best known for their respective developments of Redfall and Hi-Fi Rush.

“These changes are not a reflection of the creativity and skill of the talented individuals at these teams or the risks they took to try new things,” wrote Head of Xbox Game Studios Matt Booty in an all-company memo announcing the closures. “I acknowledge that these changes are also disruptive to the various support teams across ZeniMax and Bethesda that bring our games to market. We are making these tough decisions to create capacity to increase investment in other parts of our portfolio and focus on our priority games.”
Chai (Robbie Draymond) mocks Korsica’s (Sarah Elmaleh) failure to capture his friends in Hi-Fi Rush (2023), Tango Gameworks
Further, it appears that the closing of the DEI team is related to the previously-leaked third round of Microsoft layoffs.

As previously announced by noted inudstry insider and The Verge Senior Editor Tom Warren, “more Xbox layoffs” were set to occur on the week of July 1st – 5th.