Employees at The Coalition, the studio behind Gears of War: E-Day, say they are worried about possible additional layoffs after a round of cuts at Xbox in September. The concern centers on job security and potential effects on post-release compensation.
Staff report lingering unease despite confidence in the studio
Anonymous team members told Eurogamer that, while they believe Microsoft still has faith in The Coalition’s future, recent departures have left morale low and created a climate of uncertainty within the studio.
One employee said they do not plan to “celebrate the game until three months after launch, just to be safe,” reflecting how the layoffs have tempered plans for post-launch recognition.
Key departures and internal impact

The Coalition avoided the worst of the September cuts across Xbox but was not entirely spared. Juan Vaca, narrative director on Gears of War: E-Day, was dismissed before the game’s release, and other staff reportedly left the studio quietly, according to the reporting.
Team members described those exits as “very demoralizing.” Several employees said they expect either another round of cuts or a possible reorganization that could place the studio under a different Microsoft structure.
The worry comes amid a broader Xbox restructuring that has affected multiple studios and franchises across the division.
Layoffs could put bonuses at risk
Another major concern for developers is eligibility for performance bonuses tied to Gears of War: E-Day. Eurogamer reports that the bonus program requires developers to be full-time employees at the time payments are made.
With the bonus payment scheduled around the end of October, any layoffs before that date could leave contributors to the game without the expected bonus.
Outlook inside the studio
Despite the anxiety over further cuts and organizational changes, employees indicated they do not think Microsoft has lost confidence in The Coalition. Their primary fear is continued restructuring across Xbox in the coming months and how that might affect roles, team composition, and compensation.


