Instead of celebrating the release of Gears of War: E-Day, The Coalition employees fear layoffs

Employee fears intensified after a major shake-up at Xbox.

The Coalition employees are concerned about potential new layoffs at Microsoft and Xbox. According to Eurogamer, citing sources within the studio, the team has spent the past months working intensely on Gears of War: E-Day, but instead of celebrating the release, employees fear another wave of layoffs.

According to one source, the mood within the studio can now be described as: "Let's not celebrate until three months after the release, just in case." The source noted that such a situation is extremely unusual for the team.

In recent years, Microsoft has repeatedly carried out large-scale layoffs. Previously, The Coalition employees felt relatively protected due to working on one of Xbox's key projects, but as the development of Gears of War: E-Day neared completion, confidence waned.

Additional tension within the studio was caused by the dismissal of Juan Vaqui — the head of the narrative direction for Gears of War: E-Day. According to Eurogamer, he was laid off just two weeks before the game's release. One employee called this decision "very demoralizing."

One source suggested that The Coalition might come under Activision's management as part of a future reorganization.

Microsoft did not officially comment on the Eurogamer publication. According to the publication, the company acknowledges that employees made significant efforts to complete Gears of War: E-Day, including working beyond standard hours. It is reported that some of this additional work will be compensated with extra vacation days.