Overview

• Microsoft’s global restructuring affects about 9,000 employees—roughly 4 percent of its workforce—and marks the fourth major gaming division layoff since early 2024.
• Matt Booty confirmed that Perfect Dark and Everwild have been canceled and that The Initiative studio will close; Bloomberg also reports the cancellation of an unannounced Zenimax Online Studios MMORPG.
• Turn 10 Studios reportedly lost around half its staff, King cut about 10 percent of its workforce, and layoffs have hit Raven Software and Sledgehammer Games, according to Bloomberg.
• Phil Spencer described the cuts as a strategic realignment to remove management layers, sharpen focus on top franchises and enhance organizational agility.
• The measures follow multiple restructurings after the Activision Blizzard and ZeniMax acquisitions, reflecting Microsoft’s shift toward core franchises and cloud-based services like Game Pass.