In a drastic move, Microsoft has announced it will lay off about 9,000 employees, marking its largest workforce reduction in years. This latest round of cuts, affecting approximately 4% of its global workforce, deeply impacts its gaming division, including layoffs at Xbox and the closure of studios such as The Initiative. The cancellation of several anticipated titles, including the Perfect Dark reboot and Everwild, has also been confirmed as part of the restructuring. Xbox leader Phil Spencer acknowledged the necessity of these cuts to streamline operations, despite the tension these changes may bring within the organization. These layoffs follow a series of job purges at the tech giant as it adapts to a dynamic marketplace.