Microsoft Announces Major Layoffs, Gaming Unit Affected

Microsoft has started another wave of layoffs which will affect different staff including its gaming division, affecting hundreds of employees as the company works to reorganize its operations. King, the mobile game developer behind Candy Crush, will lose about 10% of its workforce, which equals around 200 jobs. Other European offices under Microsoft Gaming, including ZeniMax Media, are also facing job cuts.

US-based offices were expected to learn about their specific job reduction numbers throughout the day. This marks the fourth major round of layoffs at Microsoft Gaming in just 18 months. Microsoft is laying off about 9,000 workers company-wide representing roughly 4% of its total workforce. The exact number of gaming division employees affected remains unclear.

Phil Spencer, CEO of Microsoft Gaming, sent a message to staff explaining the decision. In his note, he said the company needs to “end or decrease work in certain areas” and remove management layers to become more effective. Spencer acknowledged that these cuts come during a time when gaming is performing well, with more players and gaming hours than ever before.

“The success we’re seeing currently is based on tough decisions we’ve made previously,” Spencer wrote. “We must make choices now for continued success in future years.”

Spencer emphasized that the layoffs don’t reflect poorly on the affected employees’ talents or dedication. He said the company’s success came from years of hard work by these teams.

Microsoft is providing severance packages that include pay, healthcare coverage, and job placement help for laid-off workers. The company is also giving priority consideration to affected employees who apply for other positions within Microsoft Gaming.

This latest round affects multiple studios and divisions within Microsoft Gaming, which includes Xbox, PC gaming, and mobile gaming operations acquired through companies like Activision Blizzard and King.

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