Microsoft has started a new wave of layoffs in Xbox divisions

Microsoft has begun a new series of massive layoffs at its Xbox division - the first blow being layoffs at King Studios (about 200 people), ZeniMax Media and others. This is the fourth major round in a year and a half of restructuring and shifting focus to AI.

Here's What We Know

With the start of the new fiscal year, Microsoft has embarked on another major purge at its Xbox gaming division. The company has announced massive layoffs across multiple regions - starting with the European offices of King and ZeniMax, then continuing on to the US studios. At King, around 10 per cent of staff will be laid off - that's around 200 people - while ZeniMax is affecting marketing departments in London and the US.

This is the fourth wave of mass layoffs at Xbox in 18 months: previously Microsoft has already cut staff in January, May and September 2024 - including the closure of Tango Gameworks, Arkane Austin studios and part of Activision Blizzard's staff.

The cuts come amid a general restructuring of the company, with parallel layoffs in sales and other business units to cut costs and refocus resources on the AI division .

Phil Spencer, head of Microsoft Gaming, told employees that the changes are aimed at strengthening the focus on strategically important projects and increasing agility. Meanwhile, managers at Xbox are preparing for "significant cuts" in early July.

Source: Bloomberg