Microsoft confirms layoffs at Xbox, Bethesda and King: hundreds of employees affected

Phil Spencer guarantees support for workers, but more cuts are looming.

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The information circulating in recent days has proven to be true: Microsoft has initiated a new round of layoffs that directly affects several of its video game divisions, including Bethesda and King. The news has been confirmed by internal sources and specialized media in the United States.

Among the affected teams is the Bethesda office in London, while at King, responsible for Candy Crush, it is estimated that around 10% of the staff (about 200 employees) has been laid off. Additional cuts have also been registered at ZeniMax, the parent company of Bethesda, which reinforces the magnitude of the adjustment.

Layoffs in Microsoft Gaming may not be over

Phil Spencer, the head of Xbox, has sent a letter to the affected employees where he thanks them for their work and offers assistance in finding new opportunities. According to sources like Tom Henderson and Jason Schreier, the letter also promises support in medical and labor matters, although the context remains concerning.

Some voices close to Microsoft warn that this measure could be just the beginning of a broader restructuring. It is expected that in the coming hours or days, more details will be released about new departures in other teams linked to the video game division.

So far this year, this would be the third significant round of layoffs within the Xbox environment. Although the company has insisted on its commitment to the sustainability of its studios and brands, the cuts once again put internal tensions on the table after the acquisition of Activision Blizzard.

Update with official details from Microsoft

• “We continue to implement the necessary organizational and staffing changes to position the company and teams for success in a dynamic market.” — Microsoft spokesperson.
• The total impact represents less than 4% of Microsoft’s global workforce.
• The cuts affect different levels, teams, regions, and seniority.
• We confirm that the video game division has been affected (although it is not the majority); we will not provide specific details out of respect for the employees at this time.

At Generación Xbox, we will continue to report on any official news that arises in the coming hours.

Bloomberg: Microsoft Begins Deep Job Cuts Across Xbox Division

Job cuts at King (10% of staff or about 200 jobs) and ZeniMax in Europe. US Units expected to be told later today on number of job cuts https://t.co/r9ELdCHY8o

Windows Central: Phil Spencer’s message to staff… pic.twitter.com/A1E1LF7ymJ

— Wario64 (@Wario64) July 2, 2025