Mass Gaming Layoffs At Microsoft Have Begun, With 200 People Already Impacted And More Cuts On The Way

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After reports from Bloomberg and The Verge last week revealed that Microsoft was setting up for another round of mass layoffs to its gaming division, Bloomberg now reports that the layoffs have begun, with 200 employees already impacted at Barcelona-based King studio, the team behind popular mobile title Candy Crush.

Those are just the first round of reported cuts, with unknown numbers of employees being told to brace for layoffs at ZeniMax offices across Europe, while American employees are due to find out the details of how many people will be laid off later today, according to Bloomberg.

These layoffs are the fourth instance of mass layoffs at Microsoft and its Xbox gaming division in the last 18 months, dating back to the 1,900 people Microsoft laid off in January 2024, months after it closed its acquisition of Activision Blizzard King.

Shortly after that Xbox shuttered four ZeniMax studios, including Tango Gameworks and Arkane Austin, and months after that, another 400 developers were laid off from Activision teams based in California.

If the rumors from last week regarding these cuts are correct, then we should expect the totality of today’s cuts to be closer to 2,000 people losing their jobs, and the shuttering of more studios, though it’s unclear which team will be cut at the time of this writing. A cut that big would be 10% of the total employee head count in Microsoft’s gaming division, which reportedly has 20,000 employees.

The cuts to the King studio in Spain were approximately 10% of the studio, so it might be a sweeping 10% cut across the board.

We’ll continue to update this story as more details around the cuts are revealed.



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