Microsoft Begins Deep Job Cuts Across Xbox Division

Microsoft Corp.’s gaming division began informing employees of job cuts on Wednesday morning, initiating the process of widespread layoffs that staff have been expecting for the last week.

Microsoft’s Barcelona-based King division, which makes Candy Crush, is cutting 10% of its staff, or about 200 jobs, according to people familiar with the plans. Other European offices, such as ZeniMax, also began informing employees that job cuts were happening, said the people, who asked not to be identified because they were not authorized to speak to press.

US units were expected to be told later Wednesday how many jobs would be cut at each office. Microsoft’s gaming division had about 20,000 employees as of January 2024.

Employees had been bracing for the job cuts since May, when Microsoft began conducting companywide layoffs and speculation mounted that the gaming division might be impacted. Many staff learned last week through a Bloomberg report that the cuts were imminent.

This is the fourth mass layoff at Xbox in the last 18 months. The gaming division has been under pressure from Microsoft executives to boost profit margins since purchasing Activision Blizzard for $69 billion in a deal that closed in October 2023.

Bloomberg earlier reported that Microsoft was planning to cut thousands of jobs this month, including many within the Xbox division.