Microsoft Announces Major Layoffs, Impacting 9,000 Jobs and Key Xbox Game Projects
Microsoft Announces Major Layoffs, Impacting 9,000 Jobs and Key Xbox Game Projects
Microsoft has initiated a significant workforce reduction, affecting 9,000 employees across various departments, including its prominent Xbox gaming division. The widespread layoffs, which commenced Wednesday morning, are impacting developers across multiple studios and have led to the cancellation of several anticipated game titles.
Despite Microsoft Gaming CEO Phil Spencer’s recent remarks about increased player engagement, the gaming sector is experiencing substantial cuts. Reports confirm the closure of Perfect Dark developer The Initiative, resulting in the cancellation of its long-awaited revival. Additionally, Rare’s action-adventure title, Everwild, which had been in development for over a decade, has reportedly been axed. Further impacts include ZeniMax Online Studios canceling a new MMORPG project and layoffs at King (known for Candy Crush) and Call of Duty developer Raven Software.
A Microsoft spokesperson stated that these organizational and workforce changes are necessary to position the company for success in a dynamic marketplace. While gaming is affected, it does not represent the majority of the layoffs, which are distributed across different regions, tenures, and teams. Employees whose roles are eliminated are being encouraged to apply for other internal positions within Microsoft gaming, where their applications will receive priority review.
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