BREAKING: Mass layoffs at Xbox have started. Candy Crush maker King told employees that it is cutting 10% of staff, or 200 jobs. Bethesda's Europe offices were hit too. U.S. offices are expected to inform people this morning. More to come shortly www.bloomberg.com/news/article...

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— Jason Schreier (@jasonschreier.bsky.social) 2 July 2025 at 13:49

I've a feeling this is going to be a horrific layoff if they're cutting 10% from even King who are one of the biggest money-makers thanks to Candy Crush and likely hugely profitable, God I hope not but I'm worried it's going to be 10% across the board at every studio and division. 200 from King alone is wild though, I did not realise King had 2000 employees...

Cuts to ZeniMax marketing in the UK and US.

Jamie Leder (CEO and President) left Zenimax in April, a Vice President of Analytics at Zenimax has also changed position to General Manager of Analytics at Microsoft so it appears as though Zenimax is either merging a bit more into Microsoft Gaming or merging fully into Microsoft Gaming. Which will likely mean huge chunks of Zenimax sales/marketing/executive leadership being removed.

Phil Spencer

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.

Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.

"we will end or decrease work in certain areas of the business" - End is a scary word, but maybe it's about merging Zenimax/ABK into MS Gaming.

"follow Microsoft’s lead in removing layers of management to increase agility and effectiveness." - This would back up that it's about merging Zenimax/ABK into MS Gaming...

"Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days." - Won't learn about the reorganisation changes for a few days.

The whole 2nd paragraph feels like a slap in the face to employees.

"Our platform, hardware, and game roadmap have never looked stronger." - Hardware was reaffirmed at least so I guess they aren't ending anything there.

"The success we're seeing currently is based on tough decisions we've made previously. " - It's based on the employees you're laying off.

"Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review." - Lol.

Microsoft is laying off as many as 9,000 employees. Xbox chief Phil Spencer says the company “will end or decrease work in certain areas” of Microsoft Gaming. Full memo and details 👇 www.theverge.com/news/693535/...

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— Tom Warren (@tomwarren.co.uk) 2 July 2025 at 14:23

Broader context is that Microsoft is cutting its overall workforce by 4%. CNBC says that's about 9,000 people

Gaming is impacted for sure, but it's not alone

www.cnbc.com/2025/07/02/m...

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— Stephen Totilo (@stephentotilo.bsky.social) 2 July 2025 at 14:20

CNBC: "Microsoft reported nearly $26 billion in net income on $70 billion in revenue for the March quarter. The numbers were well ahead of Wall Street’s consensus, keeping Microsoft ranked as one of the most profitable companies in the S&P 500 index, according to data compiled by FactSet."

— Stephen Totilo (@stephentotilo.bsky.social) 2 July 2025 at 14:21

Already heard Microsoft were planning on slashing their sales departments heavily, I think it was reported sales would be the majority, Satya will probably replace them with AI.

If all Microsoft is being impacted then hopefully the layoffs at MS Gaming won't be as huge as feared...

Hope everyone affected lands on their feet

In a different industry at this rate, there are not enough jobs hiring right now in the gaming industry to replace how many have been laid off and layoffs are happening every quarter so when you finally do find a job, you get laid off again 3 months later. Though probably not in the tech industry even considering that's shit right now too and about to get a lot worse thanks to AI.

Honestly I have thought to myself, if I was in College or Uni right now working on a degree to get a job in the gaming industry, I'd be seriously questioning lately whether I've made the right choice and definitely be preparing multiple backup options, I just think how depressing it must be to anyone new entering the industry watching this all unfold.

Can't wait for Xbox's 25th anniversary celebration where Microsoft gives Xbox employees the gift of being jobless as part of the celebrations and no Satya won't give a shit that 2026 is Xbox's 25th birthday, it means nothing to this dude, we'll almost certainly see thousands of layoffs aligned for the next fiscal year too in July 2026.