Microsoft following reports has begun another round of layoffs as the Seattle Times reports that around four percent or as many as 9,100 employees will be let go.
The Xbox division has been hit hard with layoffs, however, the exact number of people laid off are unknown at this time.
A report from Bloomberg reveals Candy Crush developer King is laying off about 200 employees, which is 10 percent of its staff. ZeniMax in Europe has begun informing employees of layoffs, according to people who asked not to be identified as they are not allowed to speak to the press.
Sources told Windows Central the marketing team at ZeniMax in London, UK and Rockville, Maryland in the US have been hit with layoffs.
Bloomberg’s Jason Schreier is now reporting Xbox has cancelled Rare’s Everwild, which was announced in 2019. Development on the game was reportedly “a real mess” in January 2022.
Schreier is also reporting the ZeniMax Online Studios MMOPRPG with the codename Blackbird has been cancelled. The game has been in development since 2018.
US employees at Xbox will be notified later today of layoffs. Microsoft had over 228,000 employees as of June 2024, while the entire Xbox division had around 20,000 employees as of January 2024.
Read a memo from Microsoft Gaming CEO Phil Spencer sent to employees below:
Today we are sharing decisions that will impact colleagues across our organization. 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.
I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on 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 effort 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.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.
Phil
Update 1: Added the report Rare’s Everwild has been cancelled.
Update 2: Added the report ZeniMax Online Studios MMORPG, codename Blackbird, has been cancelled.
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.
Full Article – https://www.vgchartz.com/article/465113/microsoft-laying-off-as-many-as-9000-employees-includes-layoffs-at-xbox-division/
