Microsoft Makes Significant Layoffs Across Gaming Division, Xbox Boss Phil Spencer Confirms in Memo to Staff

Microsoft has contiguous made important layoffs to its gaming division, per a memo sent to unit by Xbox brag Phil Spencer and reviewed by IGN.

A root told IGN that Candy Crush developer King was deed hard, but the layoffs impact different parts of the gaming business. IGN understands parts of Microsoft-owned Bethesda, including its London office, were besides affected by the cuts. Rare's long-in-development Xbox crippled Everwild was canceled arsenic portion of the circular of layoffs.

The gaming layoffs travel arsenic portion of an eye-watering circular of cuts crossed Microsoft that magnitude to 4%, oregon astir 9,100 of employees, losing their jobs. Microsoft has implicit 228,000 employees worldwide.

In the memo, Spencer failed to corroborate specifics, telling unit “any organizational shifts volition beryllium shared by your squad leaders successful the coming days.”

The pursuing connection from Phil Spencer was shared to each gaming unit today:

Today we are sharing decisions that volition interaction colleagues crossed our organization. To presumption Gaming for enduring occurrence and let america to absorption connected strategical maturation areas, we volition extremity oregon alteration enactment successful definite areas of the concern and travel Microsoft’s pb successful removing layers of absorption to summation agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and immoderate organizational shifts volition beryllium shared by your squad leaders successful the coming days.I admit that these changes travel astatine a clip erstwhile we person much players, games, and gaming hours than ever before. Our platform, hardware, and crippled roadmap person ne'er looked stronger. The occurrence we're seeing presently is based connected pugnacious decisions we've made previously. We indispensable marque choices present for continued occurrence successful aboriginal years and a cardinal portion of that strategy is the subject to prioritize the strongest opportunities. We volition support what is thriving and ore effort connected areas with the top potential, portion delivering connected the expectations the institution has for our business. This focused attack means we tin present exceptional games and experiences for players for generations to come.Prioritizing our opportunities is essential, but that does not lessen the value of this moment. Simply put, we would not beryllium wherever we are contiguous without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the radical involved. Our momentum is not accidental — it is the effect of years of dedicated effort from our teams.HR is moving straight with impacted employees to supply severance program benefits (aligned with section laws), including pay, healthcare coverage, and occupation placement resources to enactment their transition. Employees whose roles were eliminated are encouraged to research unfastened positions crossed Microsoft Gaming, wherever their applications volition beryllium fixed precedence review.Thank you to everyone who has shaped our culture, our products, and our community. We volition determination guardant with heavy appreciation and respect for each who person contributed to this journey. Phil

Microsoft unit who privation to stay anonymous to support their careers told IGN that employees had braced themselves for the layoffs, fearing the worst.

Microsoft has made a immense fig of cuts to its gaming concern since acquiring Activision Blizzard for $69 billion. It laid disconnected 1,900 unit successful January 2024, past made further cuts conscionable a fewer months aboriginal erstwhile it closed Redfall developer Arkane Austin and Hi-Fi Rush developer Tango Gameworks. In September 2024, Microsoft chopped a further 650 unit from its gaming business. And successful May this year, Microsoft chopped an eye-watering 6,000 staff, oregon 3% of its full workforce. Today's circular of layoffs is the 4th to deed Microsoft's gaming concern successful 18 months.

Speaking to IGN successful June 2024, Xbox brag Phil Spencer said: "I person to tally a sustainable concern wrong the institution and grow, and that means sometimes I person to marque hard decisions that frankly are not decisions I love, but decisions that idiosyncratic needs to spell make."

The cuts travel blistery connected the heels of Microsoft's confirmation that it plans to merchandise next-gen Xbox consoles, and has a beardown beingness astatine video crippled amusement gamescom.

Wesley is Director, News astatine IGN. Find him connected Twitter astatine @wyp100. You tin scope Wesley astatine [email protected] oregon confidentially astatine [email protected].