“To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” Microsoft Gaming CEO Phil Spencer says in a memo to employees.

Microsoft also cancelled Everwild, the action-adventure title in development at Rare, and said it would wind down several unannounced projects.

An Xbox spokesperson declined to confirm how many people were impacted, but the cuts were widespread and significant. Subsidiaries across the gaming organization were told that they would be affected by the layoffs.