Microsoft Job Cuts Impact Gaming: Xbox Layoffs and Candy Crush Workforce Reduction
Microsoft Layoffs Affect Gaming Division
Microsoft has begun a sweeping round of job cuts within its gaming division, affecting hundreds of employees across its global operations, Bloomberg reported. While an Xbox spokesperson declined to provide an exact number, the redundancies are said to be widespread and significant, according to sources familiar with the matter.
Widespread Xbox Layoffs and Project Cancellations
The layoffs span multiple studios and regions. King, the Stockholm-based mobile game developer known for Candy Crush, is reportedly letting go of 10 per cent of its workforce, approximately 200 staff. Other European teams, including ZeniMax, have also initiated job reductions.
- Multiple high-profile subsidiaries of Microsoft Gaming, such as Raven Software and Sledgehammer Games, have been affected.
- 343 Industries and Turn 10 Studios, known for Forza Motorsport, face cuts as well.
- Major projects, including Rare Studio’s Everwild and ZeniMax Online Studios’ original online game, have been shelved.
Notably, the report highlighted that Xbox has further axed its planned reboot of Perfect Dark and closed The Initiative, the studio co-developing the game. In a memo to staff, Xbox Game Studios head Matt Booty cited the decisions as part of a broader effort to adjust priorities and focus resources for success in an evolving industry.
Microsoft Restructuring Revealed
The redundancies form part of Microsoft’s latest wave of job cuts, which will see 9,000 roles eliminated companywide, its second major round this year. In May, the tech giant cut 6,000 roles, largely in product and engineering departments.
- Current cuts will span multiple teams, regions, and levels of seniority.
- Focus on streamlining processes and removing layers of management.
Phil Spencer, CEO of Microsoft Gaming, acknowledged the difficult decisions in an internal email, stating the company must prioritize its strongest opportunities to ensure long-term growth while assuring affected employees they would receive priority review for other roles within Microsoft.
Despite the setbacks, Spencer maintained that the company’s roadmap across platforms, hardware, and games has never looked stronger.
Employees within the gaming division had anticipated further restructuring since May, when speculation grew that Xbox could face deeper cuts. This marks the fourth significant round of layoffs within Xbox in the past 18 months, amid increasing pressure to deliver higher margins following Microsoft’s $69 billion acquisition of Activision Blizzard in late 2023.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.