The tough times at Xbox are continuing, as Microsoft is reportedly cutting more Xbox staff. This comes at a time when Microsoft’s stock price is soaring and profits are up.
According to Bloomberg, Microsoft’s Barcelona-based mobile game developer King is cutting 10% of its staff, which works out to around 200 people at the Candy Crush studio. Cuts at ZeniMax’s European offices are coming, too. Layoffs are expected to be announced at Xbox’s US-based studios today.
Xbox has been shedding staff on a semi-regular basis for the past few years. After Microsoft closed its deal to buy Activision Blizzard, it laid off around 1,900 people. An additional 650+ layoffs came later. In May 2024, Microsoft closed four studios that it acquired when it bought ZeniMax, including Arkane Austin, Tango Gameworks, Alpha Dog Games, and Roundhouse Games.
At least some of the layoffs and studio closures at Xbox are believed to be part of a wider cost-cutting program at Microsoft that has resulted in many thousands of layoffs over the past two years at the company.
Microsoft Gaming CEO Phil Spencer previously said the company needed to cut Xbox staff to be a sustainable business. Xbox president Sarah Bond gave an answer many were not pleased with as well regarding the job cuts.
Microsoft’s latest round of layoffs comes amid profitable times for the company. For Microsoft’s latest quarter, the company reported net revenue of $70.1 billion (up 13%) and a net profit of $25.8 billion (up 18%). The Xbox division specifically has posted year-over-year revenue growth. Microsoft’s stock price is up by nearly 150% in the past five years.
