Xbox layoffs: King cutting 10% staff, 200 people affected, Bethesda Europe hit

UPDATE: Microsoft has provided us the following statement:

"We continue to implement organizational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace."

Microsoft has started its expected round of mass layoffs at Xbox, and the numbers are coming in.

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Xbox's fourth mass layoff spree has begun today, affecting major branches of Microsoft's billion-dollar games division. Sources tell Bloomberg's Jason Schreier that Candy Crush developer King will lay off 10% of workers, or 200 people. Candy Crush has been downloaded billions of times, and was expected to break $14 billion lifetime revenue by the end of 2024.

Layoffs are impacting ZeniMax's European division (ZeniMax is the parent company of Bethesda), but exact numbers are unknown. The LinkedIn profile of who could have been ZeniMax CEO Jamie Leder had been made private earlier, and is now public, showing Leder as the ex-CEO of ZeniMax.

Reports say that Xbox had around 20,000 employees in the beginning of 2024, lower than the estimated 21,800 or so employees that were working at Xbox by October 2024.

It's unclear which other studios will be affected. Reports indicate that Turn10 is expected layoffs, and industry rumblings say that whole game studios could be closed as Microsoft seeks to improve its margins.

Following the $70 billion buyout of Activision Blizzard King, culminating in the most expensive tech merger in history, the Xbox games division has been pressured heavily to return on Microsoft's investment. Gaming is already a tumultuous industry, but tacking on the pressures of not only integrating new groups into your business, but also navigating the highly volatile economic environment while trying to deliver products and make future deals--that's not an easy task.

Microsoft has sent mixed messages to fans and the industry at large with its new business focus, which emphasizes cross-platform play and services made available on all devices--not just Xbox hardware.