Microsoft continues to implement layoffs within its gaming division as part of a strategic restructuring. Recently, the company cut approximately 200 jobs—about 10% of the workforce—at its mobile game studio, King. Additionally, there have been reductions reported in the marketing teams of ZeniMax Media, located in London, U.K., and Rockville, Maryland, although the precise number of affected employees in these divisions has yet to be confirmed.
Plans for further layoffs are anticipated among the U.S. teams under the Xbox division, with additional details expected to emerge soon.
Phil Spencer, CEO of Microsoft Gaming, addressed employees via email, highlighting the need for organizational changes to better position the company for future growth. He emphasized the importance of concentrating on areas with the highest potential and reducing unnecessary management layers to enhance agility. While expressing gratitude for the contributions of those affected by the layoffs, Spencer reassured employees that these decisions, although difficult, are made with the intention of fostering long-term success.
The recent job cuts mark the fourth significant round of layoffs at Microsoft Gaming in a two-year span. The previous reductions included approximately 1,900 employees in January, with major cuts also occurring in May and September of the last two years, primarily impacting teams from Activision Blizzard King.
Human resources will provide support to those impacted, including severance packages and assistance with job placement, ensuring that affected employees are given priority when applying for open positions within the organization.
While these layoffs reflect ongoing shifts within the gaming industry, Spencer’s commitment to focusing on successful areas and the overall health of Xbox suggests a potential for future growth and innovation in Microsoft’s gaming efforts.