Microsoft has laid off hundreds of employees throughout its varied divisions within the newest cost-cutting measures taken by the company, whose 2024 income exceeded $245 billion, a 16-percent enhance over its 2023 income. Although the cuts have impacted a number of of the corporate’s varied divisions, Xbox seems to be hit significantly laborious. This represents the fourth time in 18 months that Microsoft Gaming has laid off employees.
“We proceed to implement organizational and workforce adjustments 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 Recreation Informer. Alongside the official assertion, Xbox PR confirmed that lower than 4 % of Microsoft’s international workforce was impacted. Nonetheless, in line with Microsoft’s official reporting, the corporate employs 228,000 individuals worldwide, which implies 4 % of the worldwide workforce accounts for greater than 9,100 individuals. Xbox PR additionally confirmed to Recreation Informer that the gaming division is impacted, “however not the bulk,” and stopped in need of offering any further particulars. Once I requested a share of Xbox-specific influence, PR couldn’t present further context.
Nonetheless, Selection and a number of other different shops 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’d not be the place we’re with out the time, power, and creativity of these whose roles are impacted.” You may see that in its entirety under.
As we speak we’re sharing selections that can influence colleagues throughout our group. To place Gaming for enduring success and permit us to concentrate on strategic development areas, we are going to finish or lower work in sure areas of the enterprise and comply with Microsoft’s lead in eradicating layers of administration to extend agility and effectiveness. Out of respect for these impacted in the present day, the specifics of in the present day’s notifications and any organizational shifts will probably be shared by your workforce leaders within the coming days.
I acknowledge that these adjustments come at a time when we have now 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 presently is predicated on robust selections we’ve made beforehand. We should make decisions 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 are going to shield what is flourishing and focus effort on areas with the best potential, whereas delivering on the expectations the corporate has for our enterprise. This targeted method means we will ship distinctive video games and experiences for gamers for generations to come back.
Prioritizing our alternatives is important, however that doesn’t reduce the importance of this second. Merely put, we’d not be the place we’re in the present day with out the time, power, and creativity of these whose roles are impacted. These selections will not be a mirrored image of the expertise, creativity, and dedication of the individuals concerned. Our momentum isn’t unintentional—it’s the results of years of devoted effort from our groups.
HR is working instantly with impacted workers to offer severance plan advantages (aligned with native legal guidelines), together with pay, healthcare protection, and job placement sources to help their transition. Workers whose roles had been eradicated are inspired to discover open positions throughout Microsoft Gaming, the place their functions will probably be given precedence overview.
Thanks to everybody who has formed our tradition, our merchandise, and our group. We are going to 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 because 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 may learn his full memo under.
Following Phil’s observe, I need to share extra concerning the adjustments to the Studios enterprise items.
We’ve made the choice to cease improvement 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 certainly one of our studios, The Initiative. These selections, together with different adjustments throughout our groups, replicate a broader effort to regulate priorities and focus sources to arrange our groups for larger success inside a altering trade panorama. We didn’t make these decisions flippantly, as every venture and workforce characterize years of effort, creativeness, and dedication.
Our total 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’ve greater than 40 initiatives in lively improvement, continued momentum on titles transport this fall, and a powerful slate headed into 2026.
For these instantly affected, we’re working carefully with HR and studio management to offer 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 imagine within the energy of our groups and the course we’re taking up the trail forward.
Matt
In accordance 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 % 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 accordance with that very same report, a brand new MMORPG that was in improvement at ZeniMax On-line Studios, has additionally been canceled. In the meantime, Bloomberg additionally stories Raven Software program, which was acquired as a part of the Activision Blizzard King buy and has labored extensively on current Name of Responsibility titles, can also be impacted. The Verge additionally stories that Forza Motorsport developer Flip 10 Studios can also be closely impacted by these cuts, with greater than 70 individuals reportedly laid off.
Microsoft has laid off hundreds upon hundreds of employees during the last 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 had been acquired alongside Bethesda in 2021.
Our sincerest nicely 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 accordance with an e-mail from Blizzard president Johanna Faries that Aftermath considered, the corporate is basically transferring Warcraft Rumble, the 2023 free-to-play cell sport, into upkeep/live-ops mode. Because of this whereas the sport will nonetheless be supported, no new content material will probably be produced.
In accordance with the e-mail considered by Aftermath, Faries reportedly said that “a number of” of the Warcraft Rumble builders are transitioning to new initiatives, however some had been affected by the layoffs. Faries additionally reportedly talked about impacts to Blizzard’s customer support and advertising departments. In accordance with the report, the variety of impacted Blizzard workers may attain as excessive as 100, with the Overwatch workforce showing to flee unscathed this time round.
