Microsoft Layoffs Announced: Impacting 9,100 Employees Including Xbox Division And Other Units

Microsoft has announced another round of layoffs, affecting up to 9,100 employees, which is approximately 4% of its workforce. The Seattle Times reports that the Xbox division, known as Microsoft Gaming, is significantly impacted. However, specific numbers and affected divisions remain undisclosed.

In a message to his team, Xbox leader Phil Spencer stated, "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."

Impact on Various Divisions

The King division, now owned by Microsoft and responsible for Candy Crush, is reducing its workforce by about 10%, equating to 200 positions. Other units like ZeniMax have also confirmed job cuts. Additionally, more than 70 employees at Turn 10 Studios, known for Forza Motorsport, are being laid off. The Initiative studio behind Perfect Dark is closing down as part of these reductions.

These layoffs come shortly after Microsoft announced over 6,000 job cuts less than two months ago. This was followed by an additional 305 reductions in early June. Employees at Microsoft have experienced several rounds of layoffs over the past year.

Previous Layoffs and Restructuring

In January 2024, Microsoft laid off 1,900 employees from Activision Blizzard and Xbox. This was followed by game studio closures and further job losses in May. In June, another 1,000 jobs were cut from the HoloLens and Azure cloud teams. September saw an additional reduction of 650 Xbox employees due to restructuring related to Microsoft's acquisition of Activision Blizzard.

Phil Spencer's memo to employees highlighted the need for strategic decisions during this period of high player engagement and strong game roadmaps. He emphasized that these changes are necessary for future success while acknowledging the contributions of those affected.

Support for Affected Employees

The memo also mentioned that HR is working with impacted employees to provide severance benefits according to local laws. This includes pay, healthcare coverage, and job placement resources to aid their transition. Employees whose roles were eliminated are encouraged to apply for open positions within Microsoft Gaming with priority review.

Spencer expressed gratitude towards everyone who contributed to shaping Microsoft's culture and products. He assured that the company would move forward with appreciation and respect for all who have been part of this journey.