Microsoft s gaming division lays off hundreds of employees, multiple projects cancelled

Anonymous person familiar with the matter revealed to Bloomberg that several subsidiaries of Microsoft's gaming business were affected by the layoffs. King Digital, the developer of the well-known game Candy Crush, will cut about 10% of its employees, involving about 200 positions. Other European offices, including ZeniMax, have also begun layoffs.

The company also stopped several projects under development. This includes the fantasy game Everwild, originally planned to be launched by Rare Studio in the UK, and an original online game created by ZeniMax Online Studios, the developer of "The Elder Scrolls OL". People familiar with the matter revealed that with the cancellation of these projects, relevant studios will also make personnel adjustments.

Spencer did not disclose the specific number of layoffs, but said that affected employees will receive "priority" when applying for other positions in the company.

This is the second time Microsoft has adjusted its gaming business after large-scale layoffs at the beginning of the year. Analysts pointed out that this move reflects that Microsoft is further focusing on core businesses with strong profitability and great growth potential after integrating assets such as ZeniMax and Activision Blizzard.

Phil Spencer, CEO of Microsoft's gaming business, said in an email to employees: "In order to make the gaming business sustainable and focus on strategic growth, we will stop or reduce some of our business, while following the overall management of Microsoft streamlining measures to improve flexibility and efficiency."

Microsoft's gaming division began laying off hundreds of employees on Wednesday (July 2) and canceled multiple game projects that have been developed for many years to optimize business structure, improve flexibility and efficiency.