Microsoft has begun laying off staff across all divisions, including its game studios, according to new reports. Bloomberg’s Jason Schreier reports that King of Candy Crush fame and ZeniMax Media (among other European offices) have been affected. The former is expected to cut 10 percent of staff, resulting in 200 employees losing their jobs.
The full extent of cuts across studios in the United States is unknown, but things are expected to become clearer in the coming days. The Seattle Times reports that as much as four percent (or about 9100) of Microsoft’s total workforce will face layoffs.
In an internal note obtained by Windows Central, Microsoft Gaming CEO Phil Spencer told staff, “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.”
Spencer also recognized that layoffs are occurring “when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger.” However, he attributes the company’s current success to “tough decisions we’ve made previously.”
“We must make choices now for continued success in future years, and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate efforts on areas with the greatest potential while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
“Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today 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 people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.”
Those impacted will receive severance benefits and “job placement resources,” though Spencer encouraged them to “explore open positions” at Microsoft Gaming, where they will receive “priority review.”
This is far from the first instance of layoffs from Microsoft in recent years. In January 2024, it cut 1,900 jobs in its Gaming Division after completing its acquisition of Activision Blizzard. Last May, it cut three percent of its total workforce across all regions, reportedly affecting 6,000 jobs.