Xbox Announces Layoffs

Microsoft Gaming announced a new round of layoffs, as previously reported by various unofficial sources last week, with the process already underway through notifications to all affected employees. According to Microsoft’s information, nearly 9,000 employees (4% of their workforce) will be let go, including Xbox staff, who according to Phil Spencer are being laid off as the company aims to “shut down or reduce work in certain business areas” by removing management layers to streamline processes. Bloomberg reports that King, responsible for Candy Crush, plans to dismiss around 200 people, representing about 10% of the studio. Meanwhile, Rare’s Everwild, a game first announced in 2019, is being canceled as part of the cuts. Layoffs are also expected at some U.S. teams under the Xbox division, with details to come in the near future. ZeniMax has begun informing employees of job cuts, and there are cuts to ZeniMax Media’s marketing team in London, U.K., and Rockville, Maryland (details about the scale are not yet known). However, only European divisions are notifying staff, with US divisions yet to find out if they’ve been affected in the coming hours. Phil Spencer wrote a message stating their intention to position gaming for long-term success, focusing on strategic growth areas, acknowledging that layoffs will occur when they have the highest number of players, games, and playing hours ever, but necessary decisions must be made to safeguard the business and growth prospects.