Xbox Axes Thousands, Spencer Praises Future Growth

Microsoft just fired thousands of workers from its gaming division. Phil Spencer sent a company memo explaining the massive job cuts. The gaming chief told staff these changes help the company focus on growth areas. Spencer admitted the cuts come during record-breaking success for Xbox gaming.

King studio lost 200 workers from its Stockholm office. The mobile game company makes Candy Crush for millions of players worldwide. European ZeniMax offices face more layoffs across multiple locations. American employees learn their fate later today as cuts spread through different teams.

Microsoft has fired workers four times during the past eighteen months. The company previously axed 1,900 people after buying Activision Blizzard King. Four game studios shut down completely during earlier rounds of cuts. Another 400 developers lost jobs from California-based Activision teams just months ago.

Gaming division employment could drop 10 percent under the current plan. Microsoft gaming employs around 20,000 people across all its studios and offices. Reports suggest 2,000 workers might lose their jobs when cuts finish completely. The Stockholm cuts represent exactly 10 percent of that studio workforce.

Rare cancelled its major project Everwild after years of development work. Spencer praised fired employees for their creativity and hard work. The gaming boss said Microsoft would not exist without their contributions. He called the timing unfortunate but necessary for future success.
 

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