Microsoft has confirmed a new wave of workforce reductions. The Redmond firm is going to layoff approximately 9,100 employees, which is nearly 4% of the company’s total global personnel. Company's strategic priorities are named as the reason for the layoffs.
The majority of job cuts are reported to be related within Microsoft Gaming, although exact figures for each affected unit have not been disclosed. In a statement, Phil Spencer, CEO of Microsoft Gaming, ensured that the change won't negatively affect their gaming division:
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.
- According to reports from Bloomberg, the impact has been particularly significant at King, the developer behind Candy Crush Saga, where around 200 employees (approximately 10% of the the total number) have been fired.
- The studio Rare, based in the United Kingdom, has also been affected. There, Microsoft is performing internal reorganization leading to team reductions and project cancellations. Among these, the development of the title Everwild has been cancelled.
- Further personnel reductions have been confirmed at Zenimax, the parent company of Bethesda Softworks.
This round of layoffs follows earlier reductions in May and early June of this year. Those affected more than 6,000 and 305 employees, respectively. Also, multiple rounds of personnel restructuring have been done over the past year.
As the company continues its restructuring efforts, further layoffs may be expected across non-core business units in the coming months.
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