Microsoft has laid off hundreds of staff throughout its numerous 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 numerous divisions, Xbox seems to be hit significantly arduous. This represents the fourth time in 18 months that Microsoft Gaming has laid off staff.
“We proceed to implement organizational and workforce adjustments which are essential to place the corporate and groups for achievement in a dynamic market,” an Xbox spokesperson mentioned in an official remark supplied to Sport Informer. Alongside the official assertion, Xbox PR confirmed that lower than 4 p.c of Microsoft’s world workforce was impacted. Nevertheless, in keeping with Microsoft’s official reporting, the corporate employs 228,000 folks worldwide, which suggests 4 p.c of the worldwide workforce accounts for greater than 9,100 folks. 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. Once I requested a share of Xbox-specific impression, PR couldn’t present further context.
Nevertheless, 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 recreation roadmap have by no means seemed 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’ll be able to see that in its entirety under.
At present we’re sharing selections that can impression colleagues throughout our group. To place Gaming for enduring success and permit us to give attention to strategic development areas, we’ll 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 right now, the specifics of right now’s notifications and any organizational shifts will probably be shared by your crew 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 recreation roadmap have by no means seemed stronger. The success we’re seeing at present relies on robust selections 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 defend what is flourishing and focus effort on areas with the best potential, whereas delivering on the expectations the corporate has for our enterprise. This centered strategy means we are able to 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 right now with out the time, power, and creativity of these whose roles are impacted. These selections are usually not a mirrored image of the expertise, creativity, and dedication of the folks 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 sources to assist their transition. Staff whose roles had been eradicated are inspired to discover open positions throughout Microsoft Gaming, the place their purposes will probably be given precedence assessment.
Thanks to everybody who has formed our tradition, our merchandise, and our group. 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 recreation 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 Excellent 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’ll be able to learn his full memo under.
Following Phil’s be aware, I need to share extra in regards to the adjustments to the Studios enterprise models.
We’ve made the choice to cease growth of Excellent Darkish and Everwild in addition to wind down a number of unannounced tasks throughout our portfolio. As a part of this, we’re closing one among 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 better success inside a altering business panorama. We didn’t make these selections frivolously, as every undertaking and crew signify years of effort, creativeness, and dedication.
Our total portfolio technique is unchanged: construct video games that excite our gamers, proceed to develop our greatest franchises, and create new tales, worlds, and characters. We’ve greater than 40 tasks in lively growth, continued momentum on titles transport this fall, and a robust slate headed into 2026.
For these immediately affected, we’re working carefully with HR and studio management to supply assist, together with severance, profession transition help, and the place doable, 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 power of our groups and the path we’re taking over the trail forward.
Matt
In response to Bloomberg, Sweet Crush developer King, which Xbox acquired in 2023 as a part of the blockbuster $68.7 billion Activision Blizzard King deal, is reducing 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 response to 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 stories Raven Software program, which was acquired as a part of the Activision Blizzard King buy and has labored extensively on latest Name of Obligation 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 folks reportedly laid off.
Microsoft has laid off hundreds upon hundreds of staff 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 had been acquired alongside Bethesda in 2021.
Our sincerest nicely needs exit to all these impacted by the newest spherical of cuts.
Replace at July 2, 2025, 3:51pm CT:
Aftermath is reporting that Blizzard was additionally impacted by Wednesday’s layoffs. In response to an electronic mail from Blizzard president Johanna Faries that Aftermath considered, the corporate is basically shifting Warcraft Rumble, the 2023 free-to-play cell recreation, into upkeep/live-ops mode. Which means whereas the sport will nonetheless be supported, no new content material will doubtless be produced.
In response to the e-mail considered by Aftermath, Faries reportedly said that “a number of” of the Warcraft Rumble builders are transitioning to new tasks, however some had been affected by the layoffs. Faries additionally reportedly talked about impacts to Blizzard’s customer support and advertising departments. In response to the report, the variety of impacted Blizzard workers may attain as excessive as 100, with the Overwatch crew showing to flee unscathed this time round.
