Microsoft is reducing its global workforce by nearly 4%. Gaming is among the departments affected, and as a result, Xbox has abandoned games like Everwild and Perfect Dark.

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.

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 has confirmed that it will lay off as many as 9,000 workers, in the technology giant's latest wave of job cuts this year. The company said several divisions would be affected without specifying which ones but reports suggest that its Xbox video gaming unit will be hit.

Microsoft will lay off nearly 4% of its workforce, the company said on Wednesday, in the latest job cuts as the tech giant looks to rein in costs amid hefty investments in artificial intelligence infrastructure.

Microsoft says the cuts will hit divisions across the company, but did not indicate which teams will be most affected.