Microsoft is cutting back on Xbox staff again

Last week, rumors surfaced that Microsoft was preparing for massive layoffs on the Xbox team. Now Bloomberg reports that employees in the company’s gaming division were officially notified of the layoffs Wednesday morning. The PC industry giant continues its cost-cutting policies: earlier this summer, Microsoft already announced it was cutting 3% of its global workforce, and on Wednesday it announced another 9,000 layoffs.

Microsoft has already announced that it will cut 3% of its global workforce, and on Wednesday it announced another 9,000 layoffs.

According to Bloomberg, Microsoft’s Stockholm-based King division (developer of Candy Crush) will lay off 10% of its staff – about 200 people. Some other European gaming offices are also making cuts, and the US units are due to be notified later the same day.

Microsoft Gaming CEO Phil Spencer sent an e-mail to all gaming employees, the text of which was obtained by Windows Central. In it, he noted:”I realize these changes come at a time when we have more players, games and gaming hours than ever before. Our platform, «hardware» and game release plan look stronger than ever. Our current success is based on hard decisions made earlier. We need to make those same decisions now to ensure future success. An important part of that strategy is discipline and focus on the most promising areas.”

Last year, Microsoft had already laid off nearly 2,000 employees in its gaming division, including workers at Xbox and Activision Blizzard. That’s when the three ZeniMax studios acquired after the holding company was bought in 2021 were shut down. The current layoffs are the fourth for Xbox in the last 18 months. It comes amid Activision Blizzard’s high-profile $69 billion takeover of Activision Blizzard in October 2023.

Activision Blizzard’s $69 billion takeover of Activision Blizzard in October 2023.

The gaming industry as a whole is going through tough times, with an estimated 11% of game developers losing their jobs in 2024. Still, Microsoft’s financial performance continues to grow – in its most recent quarter, the company reported net income of more than $25 billion.

The story Microsoft cuts Xbox staff again was first published on ITZine.ru.