Microsoft-owned Candy Crush maker King is cutting 200 employees, about 10% of its workforce, part of a larger 9,100-person cut across Microsoft.
The layoffs are aimed at increasing agility and effectiveness, according to Microsoft Gaming CEO Phil Spencer.
The cut follows previous job reductions within Microsoft's gaming division, including closures of studios like Tango Gameworks and Arkane Austin.
Rumors suggest that the latest layoffs may impact entire studios, indicating potential significant restructuring within Microsoft's game development teams.