Microsoft has announced a slew of layoffs that affects 10,000 workers, some within the gaming division of the company. The cause is due to slowing e-commerce sales and potential economic recession.

A Bloomberg report has confirmed that at least 878 positions in Microsoft’s Washington location have been cut. A number of developers at 343 Industries (Halo Infinite), The Coalition, and Bethesda Game Studios are also part of the layoff numbers.

The company isn’t sharing specific numbers, but sources close to Bloomberg said that 343 Industries was hit the hardest. This is due to the Halo-focused company’s long-running hiring freeze and contractor departures. Furthermore, 343 Industries developer Joseph Staten, who was instrumental in steering Halo Infinite towards the finish line, is leaving the studio to rejoin Xbox Publishing.

An email within 343 Industries staff via studio head Pierre Hintze said that the company has made the difficult decision to restructure elements of the team, meaning some roles are being eliminated.

The Coalition is working on a new IP along with another Gears of War entry. Bethesda is working on Starfield which is getting a standalone presentation later this year. It remains to be seen how the layoffs will affect both companies and their respective game projects.