Microsoft Announces Layoffs in Gaming Division Amid Restructuring

Redmond, Washington – Microsoft has announced significant layoffs within its gaming division, impacting several teams including Candy Crush developer King and parts of Bethesda.

Phil Spencer, head of Xbox, communicated the changes in a memo to staff, stating that the company aims to position itself for long-term success by focusing on strategic growth areas. While specifics weren’t given, Spencer noted that affected employees would receive further updates from their team leaders.

“Today we are sharing decisions that will impact colleagues across our organization,” Spencer wrote. “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.”

Spencer emphasized that the decision reflects the need to prioritize opportunities for success, despite the company’s record of growing players and games. He acknowledged the contributions of employees affected by the cuts, describing the layoffs as a difficult necessity for future growth.

Human Resources will assist impacted workers with severance benefits and job placement resources. Employees whose roles have been eliminated are encouraged to apply for open positions within Microsoft Gaming.

This round of layoffs is part of a broader trend, with Microsoft having faced multiple rounds of cuts in its gaming sector over the past year. Many employees had anticipated these layoffs as morale within the company dipped due to earlier staff reductions.

Following Microsoft’s acquisition of Activision Blizzard, the company has made significant cuts to streamline operations and concentrate on its most profitable ventures.

“We will move forward with deep appreciation and respect for all who have contributed to this journey,” Spencer concluded in his memo.