Amidst implementing a new business strategy, Microsoft continues layoffs in its Xbox gaming division. These layoffs affect employees in both European and American offices.
Layoffs in Europe and the US
Microsoft announced layoffs in its gaming division, including the well-known company King, located in Barcelona. King, famous for the game *Candy Crush*, is cutting about 10% of its workforce, around 200 employees. Additional layoffs have been confirmed in other European offices, such as ZeniMax, which works on *Elder Scrolls* and *Fallout*. Layoffs in American offices were reported later according to sources familiar with the situation.
Reasons for Layoffs at Microsoft
Gradual layoffs in the Xbox division are happening against the backdrop of implementing a new strategic approach. "We continue to implement changes necessary to position the company and teams for success in a dynamic marketplace," said a Microsoft spokesperson. Currently, the total number of employees in the gaming division is about 20,000, and layoffs continue, including 6,000 cuts announced in May 2025.
Changes in Product Strategy
Beginning in July, Microsoft announced the Xbox ROG Ally, a portable gaming PC developed in collaboration with Taiwanese company Asus. Additionally, the company is reorganizing its Xbox distribution across Central Europe, which could lead to the closure of certain operations. Xbox president Phil Spencer noted the need to "increase agility and effectiveness" within the new strategy, but some experts, like founding Xbox executive Laura Fryer, expressed doubts about the direction the company is heading.
The layoffs in the Xbox division reflect current attempts by Microsoft to adapt to market changes and reassess its strategic goals. Details regarding new products and timelines for their launch may be announced soon.
