Microsoft continues Xbox layoffs — jobs cut at King and ZeniMax Media

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According to recent reports, Microsoft is once more reducing staff in its Xbox division, specifically at mobile game developer King. This round of cuts is estimated to affect approximately 10% of the studio, translating to around 200 jobs. (Bloomberg estimates this number.)

According to reports from Windows Central, there have been reductions in ZeniMax Media‘s marketing staff in both London, UK and Rockville, MD, USA. However, the extent of these cuts is currently unknown. Additionally, it’s expected that layoffs may occur within certain U.S. teams associated with Xbox, with further information to be revealed soon.

Phil Spencer’s message to staff

A confidential email intended for Microsoft Gaming team members was leaked to the tech news platform, Windows Central, by an unidentified insider. Here’s the content of the email as it appears below:

[The original text from your question follows here]
An email sent to all Microsoft Gaming employees was passed to Windows Central by an anonymous source. You can read the email below:

“Subject: Xbox Game Studio Reorganization

Dear Xbox Game Studio Team,

I wanted to share some news about a reorganization of our studio that will take place over the coming weeks and months. This is part of our continued efforts to drive innovation, creativity, and growth in our gaming business.

Here are the key points:

1. We will be aligning our teams around specific franchises to better focus resources on what matters most.
2. We are consolidating some studios to streamline operations and reduce redundancies.
3. Some roles may be impacted as a result of this reorganization, and we will work closely with those affected to support their transition.
4. Our commitment to the games we’re making remains unchanged, and we are excited about the future of our studio.

I understand that change can be difficult, but I believe that these steps will ultimately lead to a stronger and more successful Xbox Game Studio. Thank you for your understanding and cooperation during this transition.

Best,
[Name]”

As a tech enthusiast, I’m thrilled to share some crucial decisions that will reshape our organization for long-term success in the gaming industry. To ensure we stay competitive and focus on strategic growth areas, we are making adjustments to our business by scaling back or phasing out certain aspects. In line with Microsoft’s approach, we aim to streamline our management structure to boost agility and effectiveness.

I want to express my deepest respect for everyone who may be affected by these changes. In the spirit of transparency, your team leaders will provide specific details about today’s notifications and any organizational shifts in the coming days. We understand the impact this might have, and we are committed to supporting you through this transition as best we can.

Stay tuned for further updates, and let’s work together to create a brighter future for our gaming division.

Aware that we’re in a period where there are more gamers, games, and gameplay hours than ever, I acknowledge that our platform, hardware, and game development plans have never been stronger. The current success is the result of difficult decisions made in the past. To ensure continued prosperity in upcoming years, it’s crucial for us to make smart choices now. A significant part of this strategy involves maintaining a disciplined approach to prioritize the most promising opportunities. This means we’ll nurture what’s thriving and direct our efforts towards areas with the highest potential, all while meeting the company’s expectations for our business. With this focused strategy, we can create outstanding games and experiences for players that will last for generations.

Giving importance to each opportunity we have is crucial, yet this present moment should not be diminished in significance. In simpler terms, we wouldn’t find ourselves here today without the time, effort, and innovative thinking that our team members have invested in their roles. It’s important to clarify that these decisions do not reflect on the talent, creativity, or commitment of the individuals involved. Our current progress is no fluke—it is a testament to the hard work, dedication, and perseverance of our teams over the years.

HR is collaborating directly with affected employees to offer a severance package (in line with local regulations), which includes salary, healthcare coverage, and job placement assistance to aid in their transition. Employees whose positions have been terminated are invited to look into open roles within Microsoft Gaming, where their applications will receive special consideration during the review process.

I’d like to express my gratitude to everyone who has played a role in shaping our culture, our offerings, and our community. As we proceed on this path, we do so with a profound sense of appreciation and respect for every individual who has been part of this inspiring voyage.

Phil

Microsoft’s gaming-focused layoffs continue

Over the past two years, Microsoft Gaming has undergone four significant waves of staff reductions. In January 2024, approximately 1,900 employees were let go, primarily from Activision Blizzard King. Subsequently, three ZeniMax Media studios – Arkane Austin and Tango Gameworks among them – were shut down in May 2024. However, Tango Gameworks managed to avoid complete closure as it was acquired by Krafton and reopened under a last-minute deal. Most recently, another 650 employees from Activision Blizzard King were let go in September 2024.

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2025-07-02 16:09