Microsoft’s Game Studios Take a Hit Following Massive Layoffs

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Microsoft’s at it again—not too long after announcing its future plans for its Xbox brand, the tech giant recently confirmed that it will be slashing around 9,100 jobs across different departments within the company, a lot of which consist of staff under the Xbox division.

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This isn’t the first time this year that the company has laid off thousands, with more than 6,000 employees being let go between May and June. This latest wave of layoffs includes studios under Microsoft’s gaming division, “Candy Crush” developer King, Zenimax, Microsoft’s Turn 10 (which handles Forza Motorsport), as well as The Initiative, which is responsible for titles like “Perfect Dark”.

In a company memo, Xbox boss Phil Spencer stated that the layoffs are meant to position the company for “enduring success” and to focus on “strategic growth areas”. Part of the memo states:

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…

…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.

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