Microsoft gaming slashes jobs, cancels games including Everwild and Perfect Dark

In a significant shake-up, Microsoft has initiated widespread layoffs within its gaming division, impacting hundreds of employees globally, as reported by Bloomberg. Although an Xbox spokesperson refrained from disclosing the exact number of job eliminations, sources indicate that the cuts are extensive and affect multiple studios across various regions. Among those hit hardest is King, the mobile game developer behind the popular Candy Crush, which is reportedly reducing its workforce by 10%, amounting to around 200 jobs. Additionally, teams across Europe, including ZeniMax, are also enacting layoffs. Notable subsidiaries such as Raven Software, Sledgehammer Games, 343 Industries (responsible for the Halo franchise), and Turn 10 Studios (known for Forza Motorsport) have not been spared from these changes. As part of this restructuring, several long-term projects have been scrapped, including Rare Studio's much-anticipated fantasy title Everwild, which had been in development for several years. ZeniMax Online Studios has also put its original online game on hold, leading to job reductions in both studios. Furthermore, the decision to cancel the reboot of Perfect Dark and the closure of The Initiative, the studio collaborating on that project, has also been confirmed. In a memo to staff, Matt Booty, head of Xbox Game Studios, emphasized that these tough decisions were made to realign priorities and focus resources strategically in a rapidly evolving industry. This round of layoffs is part of Microsoft's broader initiative to reduce its workforce by 9,000 roles across the company, following a previous reduction of 6,000 jobs earlier this year, primarily affecting product and engineering sectors. The current job cuts will touch multiple teams, regions, and levels of seniority, aiming to streamline operations and eliminate unnecessary management layers. Phil Spencer, CEO of Microsoft Gaming, acknowledged the challenges posed by these layoffs in an internal email, reaffirming the company's commitment to pursuing its strongest growth opportunities for the future. He assured affected employees that they would receive priority consideration for other roles within Microsoft. Despite these setbacks, Spencer expressed confidence in the company's future, stating that the roadmap for its platforms, hardware, and games has never looked more promising. Many within the gaming division had anticipated further restructuring since May, amid growing concerns about deeper cuts. This marks the fourth significant round of layoffs for the Xbox division in the past 18 months, following increased pressure to enhance profit margins after Microsoft's $69 billion acquisition of Activision Blizzard in late 2023.