Age of Empires Studio World’s Edge Halved Its Workforce and Canceled Its Next Project Amid Microsoft Layoffs

The Age of Empires studio World’s Edge shed nearly half of its staff this week, joining Microsoft’s broader wave of job cuts and, in the same move, losing its next in-house project before being folded into Activision. The layoffs were announced on Monday as part of the wider Xbox restructuring, which saw 268 employees let go across the business as Microsoft pursues a projected target of roughly 3,200 job losses over the current financial year. While the initial announcement framed the studio’s transition as a routine reorganization, reports emerging over the following days revealed a far steeper reality: almost 50% of the team was out of work, and the studio’s upcoming title had been scrapped entirely.

World’s Edge has long been the home of the real-time strategy franchise that has defined the PC strategy scene for decades. The studio oversaw the development of the Age of Empires series, though it has historically leaned on external partners to bring individual entries to life — Relic Entertainment served as the primary developer behind Age of Empires IV, which launched in 2021 for PC and has since been ported to Xbox and PlayStation consoles. The studio’s handover to Activision raises a host of questions about its future direction, particularly given the publisher’s own ownership of Xbox’s flagship shooter brand.

A Quiet Reorganization Turns Into a Mass Exfiltration

For the first several days after the Monday announcement, the situation at World’s Edge appeared to be a standard corporate shuffle. The studio was simply being reorganized to sit under the Activision umbrella, a change that on its face did not necessarily imply sweeping job losses. It was only as employees began sharing their experiences on social media that the true scale of the cuts became clear. Staff members described being “cut loose from Microsoft” on the same day, with one noting that his final day with building access coincided exactly with his 25-year hire anniversary — a bitter irony for someone who had spent a quarter of a century building his career at the company.

“‘It was nice working with you’ was not a message I expected to get while on vacation. Like many others, I was cut loose from Microsoft today. Turns out my last day with building access is also my exact 25-year hire anniversary.”

Greg Snook, former lead principal software engineer

The emotional weight of the cuts was captured most poignantly by Adam Isgreen, the studio’s creative director who had spent 16 years at World’s Edge. He acknowledged the disappointment felt by himself and his teammates, while expressing hope for the group that remained.

“I am of course disappointed that this is the way the time with World’s Edge and Age ends for myself and many of my talented teammates that were also impacted — we had some great plans for what’s next. I hope the team that remains can rise to the occasion down the line.”

Adam Isgreen, former studio creative director

Andrew Martz, a former senior software engineer, confirmed the direct link between the restructuring and the studio’s project cancellation, noting that the two developments were inextricably tied to the same reorganization.

“Our studio was reorganized to be under the Activision umbrella. As part of that reorg, our next project was cancelled and a large chunk of our studio was laid off. I was part of that layoff.”

Andrew Martz, former senior software engineer

What’s Next for World’s Edge and the Age of Empires Brand

The path forward remains uncertain. Under Activision’s ownership, the remaining staff could be redirected toward other priorities, and the fate of the Age of Empires brand itself is now in question. The studio’s reliance on external developers has meant that the franchise’s future is never solely in its own hands — Relic Entertainment continues to be the primary developer for the latest entry, meaning Activision’s involvement in the series’ production is already well established.

Speculation is already swirling about what the studio might tackle next. An Age of Empires 5 is considered inevitable, though Activision’s ownership may see the remaining workforce put to work on other titles. Given that the publisher now also oversees Xbox’s main shooter brand, some are wondering whether a Halo strategy spin-off could be in the works. Time will tell, but the combination of a canceled project and a halved team suggests the studio’s creative momentum has taken a significant hit.

Looking Ahead

Despite the turmoil, the Age of Empires brand is not entirely dormant. The Viking Sagas DLC for Age of Empires II: Definitive Edition launched on Tuesday, adding three brand new civilizations, 15 new single-player campaign scenarios, and more. The release stands as a reminder that the franchise continues to deliver content to its player base even as the studio that nurtured it navigates a difficult transition. As World’s Edge settles into its new home under Activision, the gaming community will be watching closely to see which projects survive the shakeup and which new directions the studio decides to pursue.