Microsoft gaming division suffers further layoffs

Last week, it was rumored that Microsoft was preparing for a large round of workers xbox. Bloomberg It is now mentioned that the employees of the company’s games department were informed of the reduction of jobs on Wednesday morning. The personal computer giant is working on the task of reducing costs recently, announcing that it will abandon 3 percent of the global workforce earlier this summer, and announced 9,000 other discounts on Wednesday.
according to BloombergThe King in Stockholm was divided into Microsoft, famous for Candy CrushIt gives 10 percent of its employees, which represents about 200 jobs. While some other European games offices are also cut, American units are later informed on Wednesday.
Phil Spencer, CEO of Microsoft Gaming, has sent an email to all Microsoft Gaming employees regarding workers’ layoffs, which was obtained by Windows Central And its assertion that it is authentic by Microsoft. In it, Spencer said: “I realize that these changes come at a time when we have more players, games and games hours more than ever. Our platform, its devices and the game road map did not seem stronger. The success that we currently see depends on difficult decisions that we have taken previously.
Here is the full phil Spencer note for employees:
Today we share the decisions that will affect colleagues in our organization. To put games to achieve permanent success and allow us to focus on strategic growth areas, we will finish or unleash work in certain areas of work and follow the Microsoft leadership in removing management layers to increase movement of movement and effectiveness. In respect of those affected today, details of today’s notifications and any organizational transformations will be shared by your team leaders in the coming days.
I realize that these changes come at a time when we have more players, games and games watches more than ever. Our platform, our devices, and the game map did not seem stronger. The success that we currently see depends on difficult decisions that we had previously taken. We must take options now for continuous success in the coming years, and a major part of this strategy is discipline to determine the priorities of the strongest opportunities. We will protect what is flourishing and focuses on the effort on areas with the largest capabilities, while fulfilling the expectations that the company has for our business. This concentrated approach means that we can provide exceptional games and experiences for players for future generations.
Giving priority our chances is essential, but this does not reduce the importance of this moment. Simply put, we will not be where we are today without time, energy and creativity for those whose roles are affected. These decisions are not a reflection of talent, creativity and the dedication of the persons concerned. Our momentum is not accidental – it is a result of years of excessive effort from our teams.
Human resources work directly with affected employees to provide the advantages of the service plan (in line with local laws), including wage, health care coverage and job employment resources to support their transfer. Employees whose roles have been eliminated are encouraged to explore open jobs via Microsoft Gaming, where their applications will be granted a priority review.
Thank you to everyone who formed our culture, products and society. We will move with deep appreciation and respect for all those who contributed to this trip.
As part of today’s discharge, many games, including rare’s EverwellThe initiative was closed, Xbox Studio that was caused by Dark Perfect. The news was broken by the team by Matt Booty, the head of Xbox Game Studios, who Microsoft said, “These options were not lightly taken, as every project and a team represented years of effort, imagination and commitment.”
Here is a note of the full Matt Bouti for employees:
After noticing Phil, I want to share more about changes in studios units.
We have made a decision to stop developing the ideal of darkness and Everwild, as well as many unannounced projects through our portfolio. As part of this, we close one of our studios, initiative. These decisions, along with other changes in our teams, reflect a wider effort to set priorities and focus resources to create our teams to achieve greater success in the changing industry scene. We did not take these options lightly, as every project and a team represented years of effort, imagination and commitment.
Our comprehensive portfolio strategy has not changed: building games that excite our players, and continues to develop our largest privileges, and create new stories, worlds and personalities. We have more than 40 projects in active development, and the continuation of momentum on the nicknames of this fall, and a strong list heading to 2026.
For those affected directly, we are working closely with the leadership of human resources and studio to provide support, including chapter, functional transitional assistance, and wherever possible, opportunities to explore roles in other teams.
For everyone through our studios: Thank you. Your creativity and flexibility continues to determine who we are. I believe in the power of our teams and the direction we bear on the way forward.
Last year, Microsoft has reduced nearly 2000 jobs from its games section, affecting employees via Xbox and Activision Blizzard. In the same year, a trilogy of Zenimax game development teams was also closed after obtaining it from Game Holding Company in 2021. This will be the fourth round of discounts in Xbox in the past 18 months. These layoffs come against the background of Microsoft’s acquisition of $ 69 billion on ACTIVISION Blizzard in October 2023.
The game industry achieved two rocky years, as an estimated 11 percent of the gaming developers lost their jobs in 2024. Microsoft’s profits were in a fixed upward path, as the company reached more than $ 25 billion in net income in its last separation report. When asked to comment, I told a Microsoft Engadget spokesman that the company “[continues] To implement the regulatory changes and workforce necessary to put the company and the teams to succeed in a dynamic market. “
Update, 2 July, 6:45 pm East time: This story has been updated several times since it was published to include confirming the details of workers’ demobilization, canceling many games, closing the initiative, and a mysterious comment from a Microsoft spokesman.
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2025-07-02 22:46:00