Summary of all layoffs and cancellations in Xbox and Microsoft Gaming: a bleak day for the company

Everwild and Perfect Dark canceled, The Initiative closes, and Turn 10 loses half of its staff.

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For those who are joining now, this is the current situation after a intense day of cuts at Microsoft. At Generación Xbox, we’ve been following everything that’s happened minute by minute, and the outlook is especially tough for multiple studios and projects within the Gaming division.

Today, Microsoft has confirmed the layoff of around 9,000 employees worldwide, which represents almost 4% of its global workforce. This decision not only affects corporate sectors but also has a direct impact on the Xbox division and its internal studios, with game cancellations, team closures, and a significant restructuring. The company justifies the measure as part of an effort to “better position itself in a dynamic market” and prioritize projects with more potential.

All the layoffs and cancellations in Xbox and Microsoft today

• Rare: Everwild has been canceled after over a decade of development, with confirmed layoffs.

• ZeniMax Online: one of its projects has also been canceled.

• Call of Duty: Raven Software and Sledgehammer Games have suffered staff cuts.

• Turn 10 Studios: the Forza Motorsport team has lost 50% of its staff.

• The Initiative: the studio has been closed and Perfect Dark has been officially canceled.

• King: the team behind Candy Crush has suffered significant layoffs.

• ZeniMax Europe: there are also confirmed cuts in several European offices.

• High Moon Studios: layoffs have occurred within the studio.

• US Teams: several internal Microsoft units in the United States have been affected.

• Marketing departments: executive and managerial positions have been eliminated.

According to the internal memo shared by Phil Spencer and Matt Booty, the company is focusing solely on priority future projects, redirecting resources and closing initiatives that don’t fit into its new roadmap.

We’ll continue to report from Generación Xbox with all the details and possible repercussions for players, and if any new layoffs or significant cancellations become known.