Phil Spencer told employees Xbox will shed roles to boost agility as Microsoft restructures gaming and sales teams amid rising AI investments.

Microsoft has reportedly cancelled Everwild, an in-development game from UK-based Sea of Thieves developer Rare, and potentially other projects amid a round of layoffs that will see the company lose upwards of 9000 employees.

Microsoft Corp.’s gaming division began informing employees of job cuts on Wednesday morning, part of a broader culling at the software company as it seeks to control costs. Microsoft’s Stockholm-based King division,