In a sweeping corporate restructuring, Microsoft has laid off approximately 9,000 employees about 4% of its global workforce with its gaming division bearing a significant portion of the cuts. Among the most affected is Turn 10 Studios, the developer behind the acclaimed Forza Motorsport series, which has reportedly lost over 70 staff members, constituting the majority of its team.

While Turn 10 retains enough personnel to maintain the current Forza Motorsport title, the future of ongoing and upcoming projects remains uncertain. No specific plans were disclosed during the layoff announcements, leaving the studio’s roadmap in question.

These layoffs are part of a broader strategy by Microsoft to streamline operations and focus on strategic growth areas. Phil Spencer, CEO of Microsoft Gaming, emphasized the need to eliminate management layers and enhance agility within the organization.

The restructuring has also led to the cancellation of high-profile projects, including Rare’s Everwild and The Initiative’s Perfect Dark. Additionally, The Initiative studio has been shut down entirely.

These developments mark Microsoft’s largest staff reduction in two years and reflect ongoing shifts in the company’s gaming strategy. Employees affected by the layoffs are being offered severance packages and job placement support, with encouragement to apply for other roles within Microsoft Gaming.

As the industry grapples with these changes, the impact on Microsoft’s gaming portfolio and the future direction of studios like Turn 10 remain areas of keen interest and concern.