A Microsoft spokesperson stated that the layoffs span various teams, regions, and seniority levels, with the goal of enhancing operational efficiency by streamlining business processes and reducing management layers. The affected departments include the sales team and the Xbox gaming division.
The Xbox CEO noted that some operations will be terminated or scaled back to ensure the long-term success of the gaming division and to focus resources on strategic growth areas.
Bloomberg reported that King, the studio behind Candy Crush, will cut around 200 positions, which is 10 percent of its total staff. Additionally, Microsoft has halted several development projects, including the fantasy game Everwild by Rare Studio and a new online game developed by ZeniMax Online Studios. These studios will also see corresponding staff reductions.
It’s worth noting that Microsoft has implemented multiple rounds of layoffs this year. These include a 1 percent performance-based reduction in January, over 6,000 employees laid off in May, and at least 300 more in June. A Microsoft spokesperson emphasized that the company will continue to make necessary organizational adjustments to maintain its market competitiveness.
