It was recently leaked that Microsoft has "significant" layoffs planned for sometime in July as a result of declining revenue and a shift in the company's gaming strategy. Now, however, a number of former Xbox employees have warned current staff of the potential for retaliation in the upcoming wave of layoffs, according to a recent report by Game Developer. This isn't the first time allegations of unfair treatment have surfaced following layoffs or firings at Xbox, with former Halo Studios art director, Glenn Israel, accusing the gaming giant of harassment and retaliation. Four former Xbox staff members spoke to media, alleging that they were victims of retaliation when they stood up against alleged toxic behavior and were subsequently laid off in a wave of layoffs.

One former employee at an Xbox subsidiary says that they were laid off after they served as a witness in an investigation of a case of verbal abuse by an executive. Following the HR investigation, the executive sought to identify the former staff member during a round of layoffs. Another staff member reported being placed on a performance improvement plan in retaliation for "disrespecting" them, with a threat to accept the PIP or leave the company voluntarily. Another former Xbox employee alleges that an executive at a subsidiary studio retaliated against an employee after she filed an ADA accommodation request for a disability. According to the report, Xbox has not yet responded to these allegations, but Israel, who has spoken publicly about his alleged mistreatment at Xbox, has advised current Xbox staff members who have previously filed reports against higher-ups to record and document evidence and communications and proactively inform HR representatives that redundancy could be considered retaliatory, given the circumstances.