In early July 2025, Microsoft announced another major round of layoffs, impacting around 9,000 employees across its divisions. Among the affected teams, Turn 10 Studios, the developer of the Forza Motorsport series, reportedly lost nearly half its staff. While Microsoft and Xbox leadership avoided directly confirming the exact number, Bloomberg and multiple gaming outlets cited sources pointing to a roughly 50% reduction. The most surprising part of the news came from Phil Spencer himself, who confirmed the closure of The Initiative Studios and their reboot of Perfect Dark, intensifying concerns about the wider state of Xbox’s first-party teams.
Former Employee Sparks Motorsport Closure Rumors
Shortly after the reports, former Turn 10 staff member Fred Russell posted on Facebook that the Forza Motorsport team was “no more,” claiming Turn 10 had shuttered the Motorsport division entirely. He added that Forza Horizon would continue under Playground Games, with Turn 10 in a support role. While his comments carried weight among fans, Russell left the studio in 2016, leaving questions about the accuracy of his claims. However, current and recently laid-off employees appeared to back his account, with one content creator for Turn 10 thanking the community for “10 years of being the face and voice for this brand.”
Silence from Official Channels Fuels Speculation
The weeks following the layoffs saw a noticeable drop in Forza Motorsport’s social media activity. Previously, posts appeared several times per week, but updates on X and Instagram went silent. On the official Forza forums, players could no longer start new threads outside the suggestions category. A now-deleted post from Turn 10’s head of live service, who confirmed being laid off, suggested the changes aimed to prevent a wave of farewell messages from staff.
After nearly a month, Turn 10 finally addressed the community. In a joint statement with Playground Games, they promised continued support for Forza Motorsport and Forza Horizon 5. While this reassured some players, the message lacked specifics about future updates, raising more questions than answers.
Future Content Uncertain as Update Gap Widens
Forza Horizon 5 remains active, with Playground Games patching issues as they arise, but no new expansions are planned. Turn 10 launched Forza Motorsport less than two years ago as a reboot and marketed it as an evolving platform akin to iRacing. Yet the current language from Turn 10 suggests a shift toward maintenance mode rather than continued development.
The last major update, Update 21 in June, added two IndyCars. Rivals event schedules currently run only until September 10, with no announced content beyond that date. This gap has fans wondering if September will bring new tracks, cars, and features—or just recycled, time-limited events returning to rotation.
The uncertainty comes at a time when Forza Horizon 5 is enjoying strong sales on PlayStation 5, which could influence Microsoft’s priorities. Some believe Xbox sees greater value in consolidating efforts under the Horizon brand rather than maintaining two separate racing series, especially if one caters to a smaller niche. Some believe Xbox sees greater value in consolidating efforts under the Horizon brand rather than maintaining two separate racing series, especially if one caters to a smaller niche.
