Microsoft laying off 9,000 employees, Xbox division among those hit

Microsoft

Microsoft is letting go of around 9,100 employees, roughly 4% of its total workforce, in yet another round of job cuts this year. The layoffs are affecting several divisions, but the impact is being felt in Microsoft’s gaming arm, which includes Xbox, according to report by Seattle Times.

Xbox chief Phil Spencer broke the news to employees in an internal memo, saying the company is making “tough decisions” to focus on areas with the most potential. He admitted that some teams will be shut down or downsized, and Microsoft is also cutting management layers to “increase agility.”

The job cuts are not limited to Xbox alone. King, the mobile game maker behind Candy Crush (now owned by Microsoft), is letting go of about 10% of its staff — nearly 200 people. Other divisions like Zenimax in Europe are also seeing layoffs.

This fresh round of cuts comes just weeks after Microsoft announced 6,000 job losses in April, followed by another 305 in early June. Over the past year, the company has repeatedly trimmed its workforce. Back in January 2024, 1,900 employees from Activision Blizzard and Xbox were laid off. More job losses followed in May, along with the shutdown of several game studios. Another 1,000 people were let go from teams like HoloLens and Azure cloud in June. In September, 650 more Xbox employees were shown the door.

In his note, Spencer acknowledged that this is a painful time, especially as Xbox is seeing strong growth in players and games. “Our momentum is not accidental—it’s the result of years of dedicated effort,” he said, adding that the decision to downsize isn’t a reflection of the employees’ talent or dedication.

Microsoft says that affected employees will get severance benefits, health coverage, and help with job placements. Those impacted are also being encouraged to apply for open roles within other parts of Microsoft.

The gaming industry overall has seen multiple waves of layoffs recently, and Microsoft’s latest move adds to growing concerns about job security even in some of the biggest tech companies in the world.