Microsoft makes major layoffs in gaming division, Xbox Boss Phil Spencer confirms in memo

Microsoft has made major layoffs on its gaming division today and has been reviewed by IGN, according to a memo sent to staff by Xbox Boss Phil Spencer.

Sources told IGN that Candy Crush Developer King has taken a huge hit, but layoffs will affect other parts of the gaming business. IGN learned that parts of Microsoft-owned Bethesda, including its London office, were also affected by the cuts.

Game layoffs are part Microsoft crosses loud cuts This is equivalent to 4% or about 9,100 employees losing their jobs. Microsoft has more than 228,000 employees worldwide.

In the memo, Spencer failed to confirm the specifics, telling employees: “In the coming days, your team leaders will share any organization’s transformation.”

The following information from Phil Spencer has been shared with all gaming teams today:

Today, we are sharing decisions that will impact colleagues in our organization. To position the game for sustained success and to focus on strategic growth areas, we will end or reduce work in certain areas of the business and follow Microsoft's leadership in removing management to improve agility and effectiveness. Out of respect for the people who are impacting today, your team leaders will share details of today’s notifications and any organizational transformation in the coming days.

I realize that these changes are when we have more players, games and game time than ever before. Our platform, hardware and gaming roadmap never looks more powerful. The success we are seeing is based on the difficult decisions we have made before. Now we have to choose the option to continue to succeed in the coming years, and a key part of this strategy is to prioritize the discipline that best opportunities. We will protect what is thriving and focus on areas with the greatest potential while meeting the company’s expectations of our business. This centralized approach means we can provide outstanding games and experience to generations.

Prioritizing our opportunities is essential, but that doesn’t reduce the importance of this moment. In short, we wouldn’t be where we are today without the time, energy and creativity of the person whose characters are affected. These decisions do not reflect the talent, creativity, and dedication of the people involved. Our momentum is not accidental – it is the result of years of hard work from our team.

HR works directly with affected employees to provide severance program benefits (aligned with local laws), including compensation, health insurance and job placement resources to support their transition. Employees who eliminate roles are encouraged to explore public positions in Microsoft games, where their applications will be reviewed first.

Thank you to all the people who shaped our culture, our products and our communities. We will deeply appreciate and respect all those who have contributed to this journey.

Phil

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