Xbox Hit With Layoffs and Game Cancelations as Microsoft Cuts 9,000 Jobs

Major layoffs are rolling across Microsoft today, impacting game developers within Xbox across several studios and the projects they’re working on, even as an executive at the company told staff more gamers are playing Xbox than ever before.

According to The Seattle Times, 9,000 employees, or 4 percent of Microsoft’s workforce, are affected by the cuts, which started Wednesday morning. The full scope of layoffs within Microsoft’s gaming divisions are still unknown.

“We continue to implement organizational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace,” Microsoft spokesperson Emily Pirt told WIRED. The company says that although gaming is impacted, it does not make up the majority of layoffs, and these cuts will affect people in different regions, tenure, and teams.

In a message to staff seen by WIRED, CEO of Microsoft Gaming Phil Spencer said Xbox ...