#Microsoft lays off almost 9,000 staff, together with from gaming division and Sweet Crush growth crew – Destructoid

Microsoft has issued one other spherical of layoffs, together with in its gaming division, in line with an inner memo despatched to the corporate’s workers by Microsoft Gaming CEO Phil Spencer. These layoffs comply with those who hit all through 2024 and inside the first half of 2025.

As reported by Bloomberg, a few of the layoffs came about within the firm’s gaming division, notably Bethesda and Sweet Crush’s growth crew, King. The whole variety of layoffs affected slightly below 4 p.c of the group’s 228,000 staff.

The memo from Phil Spencer reads as follows:

Immediately we’re sharing selections that may affect colleagues throughout our group. To place Gaming for enduring success and permit us to deal with strategic progress areas, we’ll finish or lower work in sure areas of the enterprise and comply with Microsoft’s lead in eradicating layers of administration to extend agility and effectiveness. Out of respect for these impacted right now, the specifics of right now’s notifications and any organizational shifts will probably be shared by your crew leaders within the coming days.

I acknowledge that these modifications come at a time when we have now extra gamers, video games, and gaming hours than ever earlier than. Our platform, {hardware}, and recreation roadmap have by no means appeared stronger. The success we’re seeing at present relies on robust selections we’ve made beforehand. We should make selections now for continued success in future years and a key a part of that technique is the self-discipline to prioritize the strongest alternatives. We’ll defend what is prospering and focus effort on areas with the best potential, whereas delivering on the expectations the corporate has for our enterprise. This centered method means we will ship distinctive video games and experiences for gamers for generations to return.

Prioritizing our alternatives is important, however that doesn’t reduce the importance of this second. Merely put, we might not be the place we’re right now with out the time, vitality, and creativity of these whose roles are impacted. These selections will not be a mirrored image of the expertise, creativity, and dedication of the individuals concerned. Our momentum just isn’t unintentional — it’s the results of years of devoted effort from our groups.

HR is working instantly with impacted staff to offer severance plan advantages (aligned with native legal guidelines), together with pay, healthcare protection, and job placement assets to help their transition. Staff whose roles have been eradicated are inspired to discover open positions throughout Microsoft Gaming, the place their functions will probably be given precedence evaluation.

Thanks to everybody who has formed our tradition, our merchandise, and our group. We’ll transfer ahead with deep appreciation and respect for all who’ve contributed to this journey.

Phil

Microsoft has skilled a number of rounds of layoffs over the previous two years, with a batch of 1,900 staff in January 2024, 650 in September 2024, and over 6,000 between Could and June 2025. This additionally follows the closure of a number of ZeniMax groups, together with Redfall developer Arkane Austin and Tango Gameworks, the crew behind Hello-Fi Rush.

Editor’s be aware on July 2 at 11am CT: This text has been adjusted for readability.