Microsoft Lays Off 9,000, Cancels Xbox Projects

Microsoft has announced layoffs affecting around 9,000 employees, or nearly 4% of its workforce, with significant impacts on the Xbox gaming division. As part of the restructuring, several high-profile game projects, including the Perfect Dark reboot, Rare's Everwild, and ZeniMax Online's unannounced MMORPG, have been canceled. The Initiative studio, which was developing Perfect Dark, will be shut down without releasing a game. These moves are part of efforts to increase agility, streamline management, and refocus resources on strategic growth areas. Affected employees are being encouraged to apply for other roles within Microsoft, while the company states it will continue to support its strongest franchises and ongoing projects. The layoffs and cancellations underscore industry challenges facing Microsoft's gaming business.