Microsoft (MSFT, Financial) has initiated significant layoffs within its gaming division as part of a broader cost-cutting strategy. The cuts affect several subsidiaries, including the Stockholm-based King department, known for developing "Candy Crush," which is reducing its workforce by 10%, impacting around 200 positions. Other European offices, such as ZeniMax, have also begun layoffs.
Additional layoffs have been announced across Microsoft's gaming studios, including Raven Software and Sledgehammer Games, known for the "Call of Duty" series, as well as the developers of "Halo" and "Forza," Turn 10 Studios. Several long-term projects have been canceled, including "Everwild" by Rare Studio and an original online game by ZeniMax Online Studios, leading to further job cuts.
Xbox has also canceled the planned reboot of "Perfect Dark," closing one of its developing studios, The Initiative. Matt Booty, head of Xbox Game Studios, emphasized the need to prioritize and concentrate resources for greater success in the changing industry landscape.
Phil Spencer, CEO of Microsoft's gaming division, highlighted the focus on strategic growth areas while maintaining flexibility and efficiency. Although the exact number of layoffs was not disclosed, affected employees will be prioritized for internal job opportunities. Microsoft aims to streamline operations, impacting less than 4% of its total workforce, to enhance future success.
