Microsoft to lay off 9,000 employees: List of games and studios that may be affected by latest job cuts

Microsoft announced significant layoffs, affecting as many as 9,000 employees across various divisions. These cuts are also deeply impacting the company’s gaming studios, with a report indicating that over 70 people will be let go from Turn 10 Studios, the developer behind Forza Motorsport. Not only this specific studio, several other game projects and studios under the tech giant’s umbrella are reportedly facing significant setbacks.

Citing a source familiar with the situation, The Verge reports that the layoffs at Turn 10 Studios were communicated in a call with Microsoft HR representatives, impacting the “vast majority” of the studio's staff. The cuts are reportedly strategic, leaving enough personnel to ensure Forza Motorsport remains operational.

Other game projects that are said to be impacted by the layoffs include:

• Rare, that has reportedly canceled Everwild, a game first announced in 2019.
• Zenimax Online Studios, which has canceled a new MMORPG, codenamed "Blackbird."
• Microsoft is also reportedly canceling its Perfect Dark game, which was unveiled in 2020 and saw gameplay footage shown during the 2024 Xbox Games Showcase.

King, the studio behind popular mobile titles, witnessed approximately 10% of its workforce laid off. Similarly, Raven Software, a key developer for the Call of Duty series, was also impacted by these reductions, the report added.

Microsoft says strategic shifts and prioritisation as reasons for job cuts
Microsoft Gaming CEO Phil Spencer addressed the changes in a memo to employees

“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” he stated.