Obsidian Entertainment lost roughly 25 percent of its staff, or 60-70 people, in Xbox's July 6, 2026 layoffs that cut 1,600 roles immediately. The departures include senior talent across all disciplines and leave the future of projects beyond Grounded 2 and The Outer Worlds 2 DLC uncertain.

One employee described the absence of any formal instructions so far for how remaining teams should advance current assignments, especially with what was termed an extensive slate of upcoming work.
Development is reportedly set to proceed on Grounded 2, which sits in early access, along with the announced DLC for The Outer Worlds 2, but everything else stays unclear.
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