Microsoft Cuts Across Gaming Division: King, Rare, ZeniMax Among the Casualties

Candy Crush-maker King loses ~10% of staff as Microsoft reshapes Xbox ops

Microsoft has launched another major round of layoffs across its gaming division, affecting studios including King, Rare, and ZeniMax, as part of a broader restructuring initiative led by Microsoft Gaming CEO Phil Spencer.

King Lays Off Around 200 Staff

According to a report by PocketGamer.biz, King—developer of the globally popular Candy Crush Saga—has cut approximately 10% of its workforce, equating to around 200 employees. The cuts reportedly hit their Barcelona studio the hardest.

Rare and Everwild: A Tough Blow

Elsewhere in the company’s portfolio, UK-based studio Rare is facing internal layoffs, and their much-anticipated game Everwild has reportedly been canceled. The title had been in development for years but had not seen a public update in quite some time.

Video Games Chronicle first reported on the cancellation, noting that Rare will now refocus its efforts elsewhere within Microsoft’s restructuring strategy.

ZeniMax and Marketing Teams Also Affected

ZeniMax Media, known for publishing series like The Elder Scrolls and DOOM, has also been impacted. Offices in London and Maryland reportedly experienced cuts, with marketing departments being among those hit the hardest.

More Than 9,000 Laid Off Across Microsoft

The layoffs form part of a larger wave across Microsoft. According to Reuters and The Verge, the tech giant is cutting approximately 9,100 jobs globally, about 4% of its total workforce. These job losses come just months after another wave of layoffs in May 2025 that trimmed about 7,000 positions.

In an internal memo, Phil Spencer stated that the company was “ending or decreasing work in certain areas of the business” and removing layers of management to focus on “strategic growth areas.”

The Bigger Picture

These changes are the latest in a series of deep cuts across Microsoft’s gaming efforts. Previous layoffs have already shuttered studios like Alpha Dog, Arkane Austin, and Tango Gameworks. Roundhouse Games was also merged into ZeniMax Online Studios.

Microsoft’s ambitions in gaming have grown considerably following its acquisition of Activision Blizzard, but maintaining such a massive ecosystem appears to come at a cost—particularly for the people who helped build it.

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