“These decisions are not a reflection of the talent, creativity, and dedication of the people involved.”
Microsoft has begun another round of layoffs at Xbox. At the time of writing, Zenimax and King are reportedly affected.
According to a report by Bloomberg, Microsoft’s Barcelona-based King Division is losing 10 percent of its staff, which comes to roughly 200 people. Staff at Zenimax have also been informed of layoffs across its European offices, though the number of impacted employees is currently unclear.
According to a report by Windows Central, Zenimax’s London-based marketing team – as well as staff in Rockville, Maryland – are included in these cuts. Meanwhile, a memo seen by IGN has been sent around the Xbox gaming division by Phil Spencer, confirming layoffs within the company. You can read it in full below:
“Today we are sharing decisions that will impact colleagues across our organisation. 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. Out of respect for those impacted today, the specifics of today’s notifications and any organisational shifts will be shared by your team leaders in the coming days.
“I recognise that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritise the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
“Prioritising our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental – it is the result of years of dedicated effort from our teams.
“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.
“Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.”
In a subsequent statement shared with Eurogamer, a Microsoft spokesperson said: “We continue to implement organisational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace.”
These layoffs are part of extensive changes across Microsoft – CNBC has reported around 9,000 employees have been cut from across the business. That amounts to around four percent of its global workforce. CNBC also stated Microsoft reported nearly $2.6bn in net income on $70bn in revenue for its March quarter. As such, Microsoft is still ranked as one of the most profitable companies, according to FactSet data.
Word of today’s layoffs first began last month, when a report stated Xbox was set to restructure much of its central-European distribution. At this time, Bloomberg described the then-upcoming redundancies as a “major restructuring”, and the fourth case of layoffs to hit Xbox in the last 18 months.
In May, Xbox cut three percent of its total workforce, which at the time was the biggest loss of staff since 2023. Previously in September 2024, Xbox laid off 650 employees, which it said was to “organise our business for long term success”.
