• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Microsoft Makes Deep Job Cuts Across Xbox Division, Cancels Games

Microsoft Makes Deep Job Cuts Across Xbox Division, Cancels Games

A GAMING CONTROL CONSOLE SITS BEHIND A LIGHTED SIGN SAYING XBOX

An Xbox games controller. Photographer: Alex Kraus/Bloomberg

July 3, 2025
Bloomberg

Microsoft Corp.’s gaming division laid off hundreds of employees on July 2, part of a broader culling at the software company as it seeks to control costs. 

An Xbox spokesperson declined to confirm how many people were impacted, but the cuts were widespread and significant.

Subsidiaries across the gaming organization were told that they would be affected by the layoffs. Microsoft’s Stockholm-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 cutting employees early July 2, said the people, who asked not to be identified because they were not authorized to speak to the press.

News of further job cuts trickled out slowly as other units of Microsoft Gaming, such as Call of Duty studios Raven Software and Sledgehammer Games as well as Halo Studios and Forza Motorsport developer Turn 10 Studios, also announced workforce reductions, according to the people familiar. 

The company canceled several projects that had been in development for years, including the fantasy game Everwild, in development at U.K.-based Rare Studio, and an original new online game from ZeniMax Online Studios, the maker of The Elder Scrolls Online. Both of those studios will cut jobs as a result of the cancellations, according to the people.

Xbox also canceled the planned reboot Perfect Dark and shuttered The Initiative, one of the studios behind it. In an email to staff, Xbox Game Studios head Matt Booty said that the studio shutdown and project cancellations “reflect a broader effort to adjust priorities and focus resources to set up our teams for greater success within a changing industry landscape.”

Microsoft announced July 2 that it’s eliminating 9,000 workers company-wide in its second wave of layoffs this year. The cuts will have an impact across teams, geographies and tenure, and are being made in an effort to streamline processes and reduce layers of management, a company spokesperson said. The terminations follow an earlier round of 6,000 job cuts in May that fell hardest on product and engineering positions. 

The company’s gaming units were expected to be told throughout the day how many jobs would be cut at each office. The division had about 20,000 employees as of January 2024.

“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,” Microsoft Gaming chief executive officer Phil Spencer said in an email to staff seen by Bloomberg News.

Spencer didn’t share specific numbers, but said that impacted employees will be “given priority review” if they apply to open jobs elsewhere within the company. He wrote that Microsoft’s “platform, hardware, and game roadmap have never looked stronger,” but that “we must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities.”

Employees at Xbox had been bracing for the job cuts since May, when Microsoft began conducting company-wide layoffs, and speculation mounted that the gaming division might be impacted. This is the fourth mass layoff at Xbox in the last 18 months. The gaming division has been under pressure to boost profit margins since Microsoft purchased Activision Blizzard for $69 billion in a deal that closed in October 2023.

    RELATED CONTENT

    RELATED VIDEOS

    Technology Business Strategy Alignment HR & Labor Management
    • Related Articles

      A Year to Launch Date: Microsoft Plots Global Rollout of Xbox 360

      Auto Suppliers in Financial Squeeze as Automakers Demand Deep Cost Cuts, Local Production

      Deep-Freeze Challenge Makes Pfizer’s Shot a Vaccine for the Rich

    Bloomberg

    Watchdog Probing Newark Air Traffic Move Following Outages

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • A WORKER LEANS OVER IN AN OFFICE CHAIR TO WORK ON A GIANT PIECE OF MACHINERY

      Boeing Braces for Defense Hub Strike as Workers Reject Offer

      HR & Labor Management
    • BRIGHT LINES OF LIGHT SUPER-IMPOSED OVER AN AERIAL SHOT OF A PORT INDICATE MOVEMENT OF DATA

      New U.S. Coast Guard Cybersecurity Rule Enters into Force

      Ocean Transportation
    • A green sign alongside a road that reads "Heathrow," with a white passenger airplane flying overhead

      Heathrow Considering Legal Action Against Utility Company Over Fire

      Air Cargo
    • A MAN IN INDIAN CLOTHES WALKS TOWARDS A MAN IN A SUIT, HAND HELD OUT IN GREETING

      U.K. and India Seal Free Trade Agreement Slashing Tariffs, Barriers

      Global Trade & Economics
    • A FORD SIGN ABOVE A BUILDING CAN BE SEEN IN FRONT OF A YELLOW SKY.

      Trade Pact with Japan Deals Blow to U.S. Auto Industry

      Global Supply Chain Management

    Digital Edition

    Scb magazine cover vol 29 no 2

    SupplyChainBrain 2025 ESG Guide: Is ESG Still Relevant?

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    Amazon Anaplan Cleo
    CoEnterprise Dassault Enveyo
    Eva Air Flexe GAINSystems
    General Logistics Systems Geodis Georgetown University
    GEP Holman Logistics Integrity Staffing
    Korber LoadSmart Lucas Systems
    Made4Net Manhattan Associates Moodys
    MSC Air Cargo Old Dominion OMP
    PMMI Packsize Peak Technologies
    Rockwell Automation SAP Sikick
    S&P Global Mobility TADA Thomson Reuters
    Werner Enterprises Zebra Technologies
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2025 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing