By Team Latestly
New Delhi, July 3: Microsoft layoffs have reportedly affected around 9,000 employees across multiple departments, including its gaming division, Xbox Game Studios. Among the impacted teams is The Initiative, a Santa Monica-based game studio backed by Microsoft. It was known for leading the development of Perfect Dark, but it has reportedly stopped working on the project. The Initiative is now said to be shutting down as part of the latest round of Microsoft job cuts. These job cuts is said to have impacted around 4% of Satya Nadella-run Microsoft’s global workforce. As per a report of Windows Central, Xbox studio backed The Initiative is shutting down. The Initiative is said to close following the Perfect Dark cancellation. Xbox Game Studios chief Matt Booty reportedly sent an internal email confirming the cancellation of Rare’s Everwild, Perfect Dark, and several other undisclosed projects. The email reportedly noted, “We have made the decision to stop development of Perfect Dark and Everwild as well as wind down several unannounced projects across our portfolio. As part of this, we are closing one of our studios, The Initiative.” US Layoffs Surge in 2025: Over 7 Lakh Jobs Lost in United States From Various Companies, Federal Layoffs Affect 1.7 Lakh Employees. As per a report of Times of India, Microsoft’s recent job cuts has affected several employees from its gaming subsidiaries. The Microsoft layoffs have impacted roles across subsidiaries like King, ZeniMax, Raven Software, Sledgehammer Games, Halo Studios, and Turn 10 Studios. In an internal memo, Xbox CEO Phil Spencer reportedly told 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.” TikTok Layoffs Imminent? ByteDance-Owned Platform Shares Memo Announcing ‘Organisational and Personnel Changes’ Coming to E-Commerce Staff, Says Report. Reports suggest that Microsoft’s King division, based in Stockholm, is reducing its workforce by 10%, which is around 200 jobs. It marks the fourth large-scale layoff in Microsoft’s gaming segment over the past 18 months, coming after its USD 69 billion acquisition of Activision Blizzard in October 2023.