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Xbox Hit With Layoffs and Game Cancellations as Microsoft Cuts 9,000 Jobs

Megan Farokhmanesh

created: July 2, 2025, 5:33 p.m. | updated: July 7, 2025, 6:25 p.m.

Major layoffs are rolling across Microsoft today, impacting game developers within Xbox across several studios and the projects they’re working on, even as an executive at the company told staff more gamers are playing Xbox than ever before. According to The Seattle Times, 9,000 employees, or 4 percent of Microsoft’s workforce, are affected by the cuts, which started Wednesday morning. The full scope of layoffs within Microsoft’s gaming divisions are still unknown. Everwild, which was expected to launch with Game Pass for Xbox Series X/S and PC, was a new, original title from Rare. In February, during an interview with XboxEra, Spencer cited Everwild as a game release he was looking forward to.

4 weeks, 2 days ago: WIRED