Microsoft Initiates Xbox Layoffs to Improve Efficiency

Microsoft has started a new round of layoffs at Xbox, with an undisclosed number of job cuts. An Xbox spokesperson confirmed the 'workforce changes' but did not provide specific numbers. The company aims to increase agility by reducing layers of management and eliminating redundancy.

Bloomberg reported around 200 job cuts at King's offices in Barcelona, representing about 10% of the mobile studio's workforce. ZeniMax and other European offices were also affected. More cuts are expected in the United States.

Reports indicate that Microsoft is laying off 4% of its total workforce, approximately 9,100 employees. Game cancellations include an MMORPG project at Zenimax Online Studios and the cancellation of the Rare project Everwild.

Xbox boss Phil Spencer stated that the layoffs are to position Gaming for enduring success and focus on strategic growth areas. Microsoft aims to protect thriving areas of its video game business while making tough decisions for future success.

These layoffs mark the fourth major round of job cuts at Microsoft since its merger with Activision Blizzard. The company previously laid off 1,900 people, closed key studios, and let go of 650 video game workers.

Update 7/2: Microsoft reportedly closed The Initiative studio in Santa Monica following the cancellation of the Perfect Dark reboot.

According to the source: Game Developer.