A wave of layoffs shakesMicrosoft. The company has announced the elimination of thousands of jobs, directly impacting the Xbox division.
Microsoft 9,000 Jobs Affected, 4% of Workforce
Microsoft has ordered a new round of layoffs, one of the largest cuts in recent times. More bad news for the video game world, as another wave of layoffs hitsXboxand its divisions.
According toVariety and Bloomberg, Microsoft has announced—or will announce in the coming days—massive layoffs affecting around 9,000 positions, roughly 4% of the company’s workforce, which until recently totaled 228,000 employees.
The announcement directly impacts the gaming division. Xbox and many of the companies Microsoft acquired just a few years ago have begun announcing job cuts. Phil Spencer himself has issued a statement, which is shared below.
Specifically,King—creators ofCandy Crush—is losing 10% of its workforce, approximately 200 employees, according to internal sources.ZeniMax(parent company of Bethesda and other studios) has also begun notifying affected staff.
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This marks the fourth round of mass layoffs at Xbox in the past 18 months. The company is currently navigating a financial storm as it tries to turn a profit from its recent acquisitions, such asActivision Blizzard.
The arrival of former Xbox exclusives on PlayStation is another sign of Microsoft’s effort to increase profitability, alongside other measures—such as the move away from physical formats, which are no longer considered viable for Xbox.
Phil Spencer’s Letter
“Today we are sharing decisions that will impact colleagues across our organization.
To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts 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 gaming hours than ever before.Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment.Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental — it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employeesto provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community.We will move forward with deep appreciation and respect for all who have contributed to this journey.
This move marks thefourth major round of layoffs at Xbox in the last 18 months. The company remains in the middle of a financial storm, trying to capitalize on its massive purchases likeActivision Blizzard.
The decision to release Xbox exclusives on PlayStation is yet another indication of the company’s push to increase profits. Meanwhile, other strategic shifts are taking hold—such as the recognition thatphysical game formats are no longer profitablefor Xbox.
