On July 6, Kotaku reported that layoffs at Obsidian Entertainment affected between 60 to 70 employees, nearly a quarter of its workforce of 285. Current and former employees shared experiences on social media, indicating an indeterminate number of developers were let go, including long-time artist Daniel Alpert and recent hire Wenzheng Huang. Employee Kate Dollarhyde described the layoffs as significant, and while Obsidian is bound by the WARN Act to provide notice for layoffs exceeding 50 employees, the California WARN Act Tracker does not show that Obsidian reported these layoffs. Despite producing successful titles like Pentiment and The Outer Worlds 2, the studio's future is uncertain amid Xbox's anticipated layoffs and financial struggles.