Last week, rumor said that Microsoft was preparing for a large series of layoffs within the Xbox team. Bloomberg Report now that employees of the company games division were informed of job cuts on Wednesday morning. The PC giant has experienced a cost reduction mission in recent times, announcing that it would abandon 3% of its world workforce earlier this summer, and announcing 9,000 other job cuts on Wednesday.
According to BloombergMicrosoft King King division, famous for Candy CrushLocked 10% of its staff, representing around 200 jobs. While some other European play offices are also cutting, the American units were reportedly informed on Wednesday.
Phil Spencer, CEO of Microsoft Gaming, sent an email to all Microsoft Gaming employees concerning layoffs, which were obtained by Windows Central And confirmed as authentic by Microsoft. In this document, Spencer said: “I recognize that these changes occur at a time when we have more players, games and hours of play than ever.
Here is the full note of Phil Spencer to staff:
Today, we share decisions that will have an impact on colleagues in our organization. To position games for lasting success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the company and follow the example of Microsoft in the abolition of management layers to increase agility and efficiency. Out of respect for people affected today, the details of today’s notifications and any organizational change will be shared by your team leaders in the coming days.
I recognize that these changes come at a time when we have more players, games and hours of play than ever before. Our platform, your equipment and our game roadmap have never been stronger. The success we are currently seeing is based on difficult decisions that we have taken before. We must make choices now for continuous success in the years to come and a key element of this strategy is the discipline to prioritize the strongest opportunities. We will protect what is prosperous and will focus efforts on the areas with the greatest potential, while meeting the expectations of the company for our company. This targeted approach means that we can offer exceptional games and experiences for players for future generations.
It is essential to prioritize our opportunities, but that does not reduce the importance of this moment. In other words, we would not be where we are today without the time, the energy and the creativity of those whose roles are affected. These decisions do not reflect the talent, creativity and dedication of people involved. Our momentum is not accidental – it is the result of years of dedicated efforts of our teams.
HR works directly with employees affected to provide benefits (aligned on local laws), including wages, health care coverage and investment resources to support their transition. Employees whose roles have been eliminated are encouraged to explore open positions on Microsoft Gaming, where their applications will be priority.
Thank you to all those who have shaped our culture, our products and our community. We are going to move forward with a deep appreciation and the respect of all those who contributed to this trip.
As part of today’s layoffs, several games, including rare Farcewere canceled and the initiative, the Xbox studio which produced the perfect Dark restart, was closed. The news was announced to the team by Matt Booty, head of Xbox Game Studios, who said that Microsoft “had not made these choices lightly, because each project and team represent years of effort, imagination and commitment.”
Here is Matt Booty’s full note to staff:
According to Phil’s note, I want to share more on the changes in the business units of the studios.
We have made the decision to stop the development of Perfect Dark and Everwild as well as to finish several unexpected projects through our portfolio. As part of this, we close one of our studios, the initiative. These decisions, as well as other changes in our teams, reflect a wider effort to adjust priorities and concentrate resources to set up our teams for greater success in an industrial changing landscape. We have not made these choices lightly, because each project and team represent years of effort, imagination and commitment.
Our global portfolio strategy is unchanged: building games that excite our players, continue to develop our greatest franchises and create new stories, worlds and characters. We have more than 40 projects in active development, a continuous momentum on the titles of the expedition this fall and a strong slate heads around 2026.
For those who are directly affected, we work in close collaboration with HR and studio leadership to provide support, including starting indemnity, professional transition assistance and, as far as possible, opportunities to explore roles on other teams.
To all in our studios: Thank you. Your creativity and your resilience continue to define who we are. I believe in the strength of our teams and in the direction we take on the path to come.
Last year, Microsoft reduced nearly 2,000 jobs from its game division, affecting Xbox and Activision Blizzard employees. The same year, he also closed a trio of Zenimax game development teams after acquiring the video game portfolio company in 2021. It will be the fourth round of cuts in Xbox in the past 18 months. These layoffs are in the context of the acquisition of $ 69 billion from Microsoft from Activision Blizzard in October 2023.
The game industry experienced a few Rocky years, with around 11% of game developers losing their job in 2024. Microsoft’s profits were on a regular rise, the company reporting more than $ 25 billion in net profit in its latest quarterly report. When asked for comments, a Microsoft spokesperson told Eggadget that the company “[continues] Implement organizational changes and labor that are necessary to position the company and the teams to succeed in a dynamic market. »»
Update, July 2, 6.45 pm HE: This story has been updated several times since the publication to include confirmation of the details of the dismissals, the cancellation of several games, the discovery of the initiative and an exasperating commentary by a Microsoft spokesperson.
If you buy something via a link in this article, we can win a commission.
