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Xbox has once again found itself facing public scrutiny as part of another controversy.Recently, a new wave of ‘Welcome to the Family’ care packages were sent out to individuals who had just been laid off by the company, resulting in a rather embarrassing situation for the studio.
Some of these former employees have taken to social media to express their disbelief and frustration at receiving the package.
A Few Former Xbox Employees Received a Studio-Joining Care Package
The care packages, which typically include Xbox merchandise and other welcoming goodies, are meant for new employees. However, the timing of these packages reaching former employeesjust after being laid offhas been seen as insensitive and out of touch and shows a lack of management and attention when it comes to such sensitive topics.
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The timing of these care packages has only added to the narrative that Xbox’s internal communications, and studio and employee management strategies need significant improvement.
For those who just lost their jobs, receiving a package with the message ‘Welcome to the Family’ feels like a slap in the face. This latest misstep will likely further damage their reputation and make it even harder to attract and retain talent in the future – something the recent layoffs have already made worse.
Xbox is sending Xbox merch to employees they just laid offbyu/DarkSkyAboveUsinKotakuInAction
A LinkedIn post was shared by Brad Hilderbrand, a former Xbox employee who received a goody bag which is normally sent when you newly join the studio, not when you’re abruptly laid off.
A bunch of unfortunate people, who got laid off by Xbox earlier this year, have just started receiving their “welcome to the family” packages from Xbox! 😭 Typical oversized corporation bureaucracy, one middle manager doesn’t know what another is doing!https://t.co/Gj0mjNSGxPpic.twitter.com/7i3iE51aQj
— NoMansAaron (@whereisaaron)June 18, 2025
Despite the first instance of this surfacing on social media at the start of May, no one from Xbox has commented or acknowledged this situation since then. Hopefully, they will be more considerate and pay more attention to detail with sensitive situations such as this in the future.
Xbox Has Been Hit with Big Layoffs and Studio Closures This Year
This isn’t the first time the studio has faced backlash over its handling of employee relations. Earlier this year in January, the company faced criticism for the abrupt nature of the layoffs, which were part of a larger restructuring effort within Microsoft. The layoffs affected various departments including the newly acquired Activision Blizzard. A total of 1900 employees were let go. This is on top of the 10,000 employees that were also let go in January of 2023.
The studios that createdRedfallandHi-Fi Rush– Arkane Austin and Tango Software respectively, abruptly closed their doors on May 7. Microsoft stated that this was due to a reallocation of resources to their larger, more lucrative studios.
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WhileRedfallproved to be a commercial and critical failure,Hi-Fi Rushwas a huge hit with both fans and critics, becoming Xbox’s highest-rated game in three years, something that the company has recently struggled with.
Hi-Fi Rushwent on to win multiple accolades,including a BAFTA for Animationand The Game Award for Best Audio Design. Fans and industry observers expressed their disappointment and shock on social media following Tango Softworks’ shocking and disappointing closure.
What do you think of this latest fiasco? Does it show signs of a bigger problem within Xbox? Let us know in the comments below.
Suhaib Adeel
Gaming Writer
Articles Published :336
Suhaib is a Gaming Writer at FandomWire. He’s extremely passionate about video games and movies, and loves working in the pop culture space. Some of his favorite games include Fallout: New Vegas, Disco Elysium, Yakuza: Like a Dragon, Red Dead Redemption 2, Persona 5, Final Fantasy XII, Dishonored, The Last of Us Part II, and Bloodborne.
