Microsoft has reportedly begun making layoffs across its gaming division today, July 2, as was expected based on multiple rumours and reports from last week.
According to Bloomberg, Microsoft’s King mobile gaming division is laying off 200 people, or around 10% of the workforce, in Barcelona, Spain.
Employees in ZeniMax’s European offices have also been informed that cuts are underway, says the report.
Bloomberg’s story mentions that US offices are expecting to be told how many staff will be laid off at each office later today.
The layoffs coincide with the end of Microsoft’s financial year on June 30. This is the fourth round of layoffs at Microsoft’s gaming division in 18 months. Microsoft laid off 3% of its staff back in May.
This story will be updated as more information is learned about which studios or parts of the division are affected by the cuts.
Xbox has not commented publicly on the layoffs yet, and did not answer a request for comment from GamesIndustry.biz based on last week’s reports.
During its most recent round of results for Q3 2025, Microsoft revealed that revenue increased 5% year-over-year for its gaming segment.