Xbox Faces Workforce Reduction

Microsoft has initiated a significant wave of job cuts within its Xbox division, impacting European subsidiaries such as King and ZeniMax Media. These cuts are part of a broader reorganisation effort within Microsoft, marking the fourth downsizing of the gaming division in the last 18 months. The layoffs at King may affect approximately 10% of the studio, potentially resulting in around 200 job losses. ZeniMax Media's marketing teams in London and Rockville, Maryland, are also experiencing reductions.

These workforce reductions follow previous cuts, including 1,900 layoffs in January 2024, 650 in September 2024, and 6,000 in May 2025. Microsoft aims to streamline processes and improve efficiency. The company's gaming division faces pressure to increase profit margins after the Activision Blizzard acquisition.

Microsoft is also restructuring its central Europe Xbox distribution, with some regional operations ceasing. These changes align with Microsoft's pattern of making organisational adjustments at the end of its fiscal year.