Microsoft Cuts 9,000 Jobs: Xbox Layoffs & Game Cancellations
▼ Summary
– Microsoft is laying off 9,000 employees (4% of its workforce), including game developers within Xbox, though gaming is not the majority of cuts.
– Xbox CEO Phil Spencer stated the layoffs aim to increase agility and focus on strategic growth areas, despite record player engagement.
– Several game projects, including Perfect Dark and Everwild, have been canceled as part of the restructuring.
– Affected employees are encouraged to apply for other roles within Microsoft gaming, with priority review given to their applications.
– Layoffs are also impacting studios like ZeniMax, King, and Raven Software, with specific team details to be shared by leaders in coming days.
Microsoft has announced significant workforce reductions, with nearly 9,000 employees affected, roughly 4% of its global staff. The cuts span multiple divisions, including its gaming operations under Xbox, though the exact number of impacted gaming roles remains unclear. While the company emphasizes these changes aim to streamline operations, the move comes despite record engagement across Xbox platforms.
A Microsoft spokesperson stated the restructuring reflects necessary adjustments to remain competitive in a shifting market. Gaming represents only a portion of the layoffs, with employees across regions, experience levels, and teams facing job losses. Phil Spencer, CEO of Microsoft Gaming, acknowledged the timing contrasts with Xbox’s growing player base but framed the decision as aligning with broader corporate strategy. Affected staff will receive priority consideration for other roles within Microsoft’s gaming division.
Reports indicate several high-profile game projects have been axed amid the restructuring. The Initiative, tasked with rebooting Perfect Dark, is shutting down, halting development on the anticipated revival. Rare’s long-gestating Everwild, an original IP in the works since 2019, has also been canceled after multiple reboots. Meanwhile, ZeniMax Online Studios scrapped an unannounced MMORPG, and King, creator of Candy Crush, saw around 200 layoffs. Raven Software, known for its work on Call of Duty, was similarly impacted.
Spencer’s internal memo stressed the need to focus on high-potential areas while meeting corporate expectations. He cited management layer reductions as a key step toward operational efficiency. Teams across Xbox and affiliated studios are still awaiting detailed briefings, with some holding emergency meetings to address the fallout.
Everwild’s cancellation marks a notable setback. Initially revealed with a cryptic trailer, the game underwent multiple overhauls, including a complete reboot in 2021. Despite Spencer’s recent optimism about its progress, the project joins a growing list of shelved titles. The broader cuts underscore the volatility within the gaming industry, even for subsidiaries of tech giants like Microsoft.
Employees were reminded that specifics about role eliminations and team reorganizations will follow in the coming days. The company has pledged support for departing staff, including severance and transition assistance. For now, the gaming division’s future roadmap remains under scrutiny as Microsoft balances growth with austerity measures.
(Source: Wired)
