1. Starfield was not the overwhelming hit Microsoft wanted from Bethesda.
Microsoft marketed the everliving hell out of this game. I'd venture to say that there hasn't been a game that reached the heights of Starfield regarding market penetration pre-release. Certainly not a new game (IP). It was everywhere. It's easy to see why as the "idea" of the game is pretty incredible.
Microsoft wanted everything Skyrim and Fallout are now, straight out of the gate with Starfield. Or, if not out of the gate, a few months later when word of mouth got around to non-believers. They trusted Bethesda to deliver that. They didn't. The game does not appear to have legs either.
If a corporation misses the mark on a product, they must cut something. Unfortunately it's usually staff. I've been on both sides. It sucks.
2. Cutbacks are normal.
Generally speaking, this happens often when a larger company buys a smaller one as many positions become redundant and/or the culture is/could be problematic (in video games?? NO!). Of course, it is terrible, especially when you are talking about creative jobs, but it is a normal thing. In a perfect world, studios would remain independent and call their own shots.
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Microsoft is wrestling with Xbox's direction and (from afar) leadership comes off as weak because of it. They need to decide on a course and go with it 100%. Sending mixed messages to customers will kill the Xbox.
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