For many of us in the working world, the reality of the economy is something that affects us all. But when a massive corporation that posts record profits year after year initiates a massive layoff, it can be incomprehensible. How can companies capable of generating billions in revenue and supporting hundreds of thousands of employees still claim the need for cost-cutting and efficiency? Unfortunately, this paradox has resurfaced once again, this time within the gaming division of Microsoft at Xbox.
Following its multi-billion-dollar acquisitions of Bethesda and Activision Blizzard, the division is reportedly undergoing another round of corporate downsizing. According to a recent report from Bloomberg, nearly every major branch within Xbox’s gaming ecosystem has been affected.
King, the developer behind the globally popular Candy Crush franchise, has laid off approximately 10% of its workforce, affecting around 200 employees. Other European branches, including Zenimax, are expected to follow suit, though exact figures remain undisclosed.
Microsoft Layoffs Include Xbox Division
The layoffs are not limited to Europe. Xbox offices in the United States are also confirmed to be affected, although no specific percentages have been shared regarding how many of the approximately 20,000 employees will be let go. These job cuts are part of a larger restructuring plan by Microsoft, which will result in approximately 9,000 employees being laid off across multiple divisions and international locations.
As a direct consequence of this wave of layoffs, several gaming projects have already been cancelled. Among them is a mysterious new MMORPG in development at Zenimax Online, as well as Everwild, a title from Rare that has been in development since 2019.
Division head Phil Spencer addressed the situation with what many see as a typical corporate rationale. He described the layoffs as “essential” to help Microsoft focus on its growth sectors and become a more agile and effective organisation moving forward.
The decision underscores an increasingly familiar and uncomfortable trend in the gaming industry: that even amidst massive commercial success, job security remains anything but guaranteed.
