Microsoft has laid off hundreds of employees throughout its numerous divisions within the newest cost-cutting measures taken by the company, whose 2024 income exceeded $245 billion, a 16-percent improve over its 2023 income. Although the cuts have impacted a number of of the corporate’s numerous divisions, Xbox seems to be hit significantly onerous. This represents the fourth time in 18 months that Microsoft Gaming has laid off employees.
“We proceed to implement organizational and workforce modifications which are essential to place the corporate and groups for fulfillment in a dynamic market,” an Xbox spokesperson stated in an official remark offered to Sport Informer. Alongside the official assertion, Xbox PR confirmed that lower than 4 p.c of Microsoft’s international workforce was impacted. Nevertheless, in accordance with Microsoft’s official reporting, the corporate employs 228,000 individuals worldwide, which suggests 4 p.c of the worldwide workforce accounts for greater than 9,100 individuals. Xbox PR additionally confirmed to Sport Informer that the gaming division is impacted, “however not the bulk,” and stopped in need of offering any further particulars. After I requested a share of Xbox-specific affect, PR couldn’t present further context.
Nevertheless, Selection and a number of other different retailers obtained a memo to Xbox workers from Microsoft Gaming CEO Phil Spencer. Notably, Spencer says, “Our platform, {hardware}, and sport roadmap have by no means regarded stronger,” and “Merely put, we might not be the place we’re with out the time, power, and creativity of these whose roles are impacted.” You’ll be able to see that in its entirety under.
Right this moment we’re sharing choices that can affect colleagues throughout our group. To place Gaming for enduring success and permit us to give attention to strategic development areas, we are going to finish or lower work in sure areas of the enterprise and observe Microsoft’s lead in eradicating layers of administration to extend agility and effectiveness. Out of respect for these impacted at the moment, the specifics of at the moment’s notifications and any organizational shifts shall be shared by your workforce leaders within the coming days.
I acknowledge that these modifications come at a time when we now have extra gamers, video games, and gaming hours than ever earlier than. Our platform, {hardware}, and sport roadmap have by no means regarded stronger. The success we’re seeing at the moment relies on robust choices we’ve made beforehand. We should make selections now for continued success in future years and a key a part of that technique is the self-discipline to prioritize the strongest alternatives. We’ll shield what is prospering and focus effort on areas with the best potential, whereas delivering on the expectations the corporate has for our enterprise. This targeted strategy means we will ship distinctive video games and experiences for gamers for generations to return.
Prioritizing our alternatives is crucial, however that doesn’t reduce the importance of this second. Merely put, we might not be the place we’re at the moment with out the time, power, and creativity of these whose roles are impacted. These choices will not be a mirrored image of the expertise, creativity, and dedication of the individuals concerned. Our momentum shouldn’t be unintentional—it’s the results of years of devoted effort from our groups.
HR is working immediately with impacted workers to supply severance plan advantages (aligned with native legal guidelines), together with pay, healthcare protection, and job placement assets to help their transition. Staff whose roles have been eradicated are inspired to discover open positions throughout Microsoft Gaming, the place their functions shall be given precedence assessment.
Thanks to everybody who has formed our tradition, our merchandise, and our neighborhood. We’ll transfer ahead with deep appreciation and respect for all who’ve contributed to this journey.
Phil
Subsequently, The Verge acquired a memo despatched by Xbox president of sport content material and studios, Matt Booty. In his memo, Booty confirms Xbox is closing down The Initiative, an all-new first-party studio based by Xbox in 2018 in Santa Monica, California. In 2020, The Initiative revealed it was engaged on a brand new entry within the Good Darkish franchise, which is now canceled on account of this closure. Booty additionally confirms the Twycross, England-based Uncommon, which Xbox acquired in 2002 and has labored on titles like Sea of Thieves and Viva Piñata, has been impacted by this spherical of layoffs, and its new IP, Everwild, which was introduced in 2019, has additionally been canceled. You’ll be able to learn his full memo under.
Following Phil’s word, I wish to share extra concerning the modifications to the Studios enterprise items.
We have now made the choice to cease growth of Good Darkish and Everwild in addition to wind down a number of unannounced initiatives throughout our portfolio. As a part of this, we’re closing considered one of our studios, The Initiative. These choices, together with different modifications throughout our groups, replicate a broader effort to regulate priorities and focus assets to arrange our groups for larger success inside a altering trade panorama. We didn’t make these selections flippantly, as every undertaking and workforce signify years of effort, creativeness, and dedication.
Our general portfolio technique is unchanged: construct video games that excite our gamers, proceed to develop our largest franchises, and create new tales, worlds, and characters. We have now greater than 40 initiatives in lively growth, continued momentum on titles transport this fall, and a powerful slate headed into 2026.
For these immediately affected, we’re working intently with HR and studio management to supply help, together with severance, profession transition help, and the place attainable, alternatives to discover roles on different groups.
To everybody throughout our studios: thanks. Your creativity and resilience proceed to outline who we’re. I consider within the power of our groups and the path we’re taking over the trail forward.
Matt
In line with Bloomberg, Sweet Crush developer King, which Xbox acquired in 2023 as a part of the blockbuster $68.7 billion Activision Blizzard King deal, is slicing 10 p.c of its workers, which quantities to round 200 jobs, and ZeniMax, which Xbox acquired in 2021 as a part of its $7.5 billion acquisition of Bethesda, suffered losses. In line with that very same report, a brand new MMORPG that was in growth at ZeniMax On-line Studios, has additionally been canceled. In the meantime, Bloomberg additionally studies Raven Software program, which was acquired as a part of the Activision Blizzard King buy and has labored extensively on latest Name of Responsibility titles, can be impacted. The Verge additionally studies that Forza Motorsport developer Flip 10 Studios can be closely impacted by these cuts, with greater than 70 individuals reportedly laid off.
Microsoft has laid off hundreds upon hundreds of employees over the past 18 months, together with 1,900 workers in January 2024. In Might 2024, Xbox closed Arkane Austin, Tango Gameworks, and Alpha Canine Video games, and laid off a number of workers at ZeniMax, all of which have been acquired alongside Bethesda in 2021.
Our sincerest effectively needs exit to all these impacted by the most recent spherical of cuts.
Replace at July 2, 2025, 3:51pm CT:
Aftermath is reporting that Blizzard was additionally impacted by Wednesday’s layoffs. In line with an e mail from Blizzard president Johanna Faries that Aftermath seen, the corporate is basically transferring Warcraft Rumble, the 2023 free-to-play cellular sport, into upkeep/live-ops mode. Which means whereas the sport will nonetheless be supported, no new content material will seemingly be produced.
In line with the e-mail seen by Aftermath, Faries reportedly acknowledged that “a number of” of the Warcraft Rumble builders are transitioning to new initiatives, however some have been affected by the layoffs. Faries additionally reportedly talked about impacts to Blizzard’s customer support and advertising and marketing departments. In line with the report, the variety of impacted Blizzard workers might attain as excessive as 100, with the Overwatch workforce showing to flee unscathed this time round.
