By Microsoft has initiated a fresh wave of substantial job eliminations, affecting its gaming sector despite Xbox head Phil Spencer asserting that the organization’s “platform, hardware, and game roadmap have never appeared more robust.”
Rumors of impending job losses were disclosed by Bloomberg last week, which now states that personnel are being notified today about the plans. Candy Crush creator King is eliminating around 200 positions, affecting approximately 10% of its workforce, according to the site’s insiders. The precise number of job cuts across additional locations, such as in the US and other parts of Europe, isn’t presently clear.
In a declaration provided to GamesRadar+ on July 2, a Microsoft representative mentions: “We are continuously executing organizational and workforce adjustments that are essential to position the company and teams for achievement in a dynamic market.”
While no particulars were shared confirming the count of Microsoft Gaming personnel impacted by the layoffs, it is mentioned that nearly 4% of Microsoft’s overall workforce has been affected. As of last year, it was estimated that Microsoft hires approximately 228,000 individuals.
Bloomberg additionally shares an email sent to staff by Microsoft Gaming CEO Phil Spencer (fully posted by The Verge), who recognizes that “these modifications arrive at a moment when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never seemed more robust.”
Nonetheless, he adds that “the achievements we are experiencing at present are based on the difficult decisions we’ve previously taken,” and emphasizes that “it is imperative that we make decisions now for ongoing success in the coming years, and a pivotal component of that strategy is the discipline to emphasize the strongest prospects.”
“We will safeguard what is flourishing and focus efforts on areas with the highest potential while meeting the expectations the company has for our business,” Spencer continues. “This concentrated approach allows us to provide outstanding games and experiences for players for generations to come.”
Spencer adds that “we would not be at our current position without the time, energy, and creativity of those whose roles are affected,” and says those impacted are “urged to investigate available roles across Microsoft Gaming, where their applications will receive priority evaluation.”
However, as Bloomberg highlights, the circumstances feel particularly bleak, given that this marks the fourth wave of layoffs since January 2024, when nearly 2,000 individuals lost their jobs. Following that, there was the shutdown of studios, including Arkane Austin and Tango Gameworks (the latter of which was later revived by Krafton), succeeded by the layoff of an additional 650 individuals a few months later.
The overall situation still appears to be developing, with more information becoming available gradually, as it has also been reported that Everwild, an action-adventure from Rare, has been terminated amid the layoffs.
This article has been updated to include a comment from a Microsoft representative.