Gears of War: E-Day developers reportedly fear layoffs after launch

Developers at The Coalition are reportedly worried that more layoffs could follow the October 6 release of Gears of War: E-Day. Multiple anonymous studio sources told Eurogamer that recent cuts across Xbox have left staff uncertain about their jobs even as the team prepares to launch one of Microsoft's biggest games of the year.

The concerns have grown after E-Day story director Juan Vaca was laid off shortly after the game went gold. Vaca publicly confirmed that he was affected by Microsoft's latest round of job cuts, while other Coalition employees were also reportedly let go.

One developer told Eurogamer that staff had already expected layoffs after E-Day shipped but were surprised to see cuts reach the studio before launch. Another source said employees are now preparing for another wave of layoffs or a possible reorganization later in 2026.

The Coalition had previously been viewed internally as relatively secure because of its work on the Gears franchise and its record of delivering projects for Microsoft. According to the report, Vaca's departure and other recent cuts have weakened that confidence among remaining staff.

Microsoft has not announced a post-launch round of layoffs at The Coalition. The reported fears reflect concerns among employees rather than a confirmed plan from Xbox leadership.

The timing of any further cuts could also affect bonuses linked to E-Day's critical reception. Eurogamer verified an internal email confirming that The Coalition uses a Metacritic-based bonus scheme, with the payout expected around the end of October.

Employees reportedly need to be full-time members of the studio when the bonus is paid. Eurogamer understands that workers already affected by the latest cuts, including Vaca, will still receive their bonuses if the required targets are reached, but the position of anyone laid off immediately after launch remains unclear.

One developer described the possibility of being cut before the payout as a "morbid joke" among staff. Another source said confidence in Microsoft's assurances has fallen following the company's recent restructuring.

Microsoft announced another 268 job cuts across Xbox on September 22 as part of a restructuring first outlined in July. The company said those changes brought it roughly three-quarters of the way through the previously announced process.

The same restructuring has changed several first-party studios. Activision has taken on a larger role across Rare, World's Edge and future Halo development, while Bethesda now oversees Obsidian and other studios have faced divestitures or consultation over possible closures.

Gears of War: E-Day launches October 6 for Xbox Series X|S and PC, with Game Pass availability from day one. The prequel follows younger versions of Marcus Fenix and Dominic Santiago during the Locust Horde's initial attack on Sera.

The Coalition also has post-launch plans for the game, including multiple seasons of additional content. Those plans continue as reported uncertainty hangs over the studio, with Microsoft yet to announce whether further workforce changes will affect The Coalition after E-Day releases.