Microsoft Initiates Major Gaming Layoffs: 200 Employees Affected With More Reductions Expected

Microsoft’s Gaming Division Faces Significant Layoffs

Recent reports from both Bloomberg and The Verge confirm that Microsoft has initiated another wave of layoffs within its gaming division. This move follows the announcement of mass job reductions and affects various teams, significantly impacting the King studio located in Barcelona, which is best known for developing the wildly popular mobile game, Candy Crush.

Impact of Layoffs

Initial reports indicate that approximately 200 employees from the King studio have been laid off. These job cuts are merely the first phase, as various ZeniMax offices across Europe also brace for potential layoffs. American employees are expected to be informed about the extent of job losses later today, further emphasizing the uncertainty surrounding these cuts.

A Pattern of Job Reductions

This round of layoffs marks the fourth significant reduction in workforce for Microsoft and its Xbox gaming division over the last 18 months. The streak began in January 2024 when 1, 900 employees were let go shortly after Microsoft completed its acquisition of Activision Blizzard King. Subsequently, Xbox closed four ZeniMax studios, including notable developers like Tango Gameworks and Arkane Austin, leading to another 400 job losses from Activision teams based in California.

Future Expectations and Concerns

If the rumors regarding the current layoffs hold true, we might be looking at a total of approximately 2, 000 jobs being eliminated. This would represent a staggering 10% reduction of Microsoft’s gaming division, which currently employs around 20, 000 people globally. The cuts at the King studio alone accounted for about 10% of its workforce, suggesting a potentially widespread approach to reductions across the division.

As the situation develops, we will continue to provide updates regarding the layoffs and any additional studio closures that may arise. This ongoing trend of job cuts within Microsoft’s gaming sector raises essential questions about the future stability of the company amidst a rapidly changing digital entertainment landscape.

Source & Images