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.

News of Microsoft’s major layoffs today keep rolling in, as the company informs around 9,000 employees of the cuts. I’ve heard from sources that the Xbox user research team has been hit hard, with nearly half the team affected.

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