Microsoft lays off 9,100 employees

According to reports The Seattle Times Microsoft has confirmed it will lay off up to 9,100 employees, representing about 4% of its global workforce. This is the second wave of layoffs this year.

Microsoft's Xbox gaming division (Microsoft Gaming) has been particularly hard hit, although exact numbers and divisional breakdowns are currently unknown.

"To position Gaming for long-term success and focus on strategic areas of growth, we will close or reduce work in certain areas and follow Microsoft's strategy of eliminating layers of leadership to increase agility and efficiency," Xbox head Phil Spencer told employees.

According to information Bloomberg Microsoft's King studio, known for its Candy Crush game, is also facing layoffs, with about 10 percent of its employees, or 200 people, losing their jobs. ZeniMax also confirmed job cuts, while Turn 10, the developer of Forza Motorsport, will cut more than 70 jobs. Microsoft has also canceled development on Perfect Dark and Everwild, and The Initiative, the studio that developed Perfect Dark, will be shut down.

Microsoft announced two months ago that it would lay off 6,000 employees, and in early June, it laid off an additional 305 workers. Over the past year, Microsoft employees have experienced a series of waves of layoffs, including performance-based cuts, which have taken a toll on morale.

Microsoft laid off 1,900 employees at Activision Blizzard and Xbox in January 2024, followed by new studio closures and layoffs in May, another 1,000 people from the HoloLens and Azure teams lost their jobs in June, and in September, another 650 employees in the Xbox division were laid off as part of the reorganization following the acquisition of the Activision Blizzard studio.