Within the newest spherical of layoffs to hit the gaming trade, 1,900 folks from Microsoft’s online game division will likely be minimize from the corporate. In a brand new memo despatched to employees (by way of IGN), Xbox head Phil Spencer spoke about “the painful choice” to scale back the variety of folks within the Microsoft online game workforce, whereas additionally pledging to “absolutely help” these folks affected with severance advantages. GameSpot has reached out to Microsoft, and the corporate has confirmed that the memo is correct.
“As we transfer ahead in 2024, the management of Microsoft Gaming and Activision Blizzard is dedicated to aligning on a technique and an execution plan with a sustainable value construction that may help the entire of our rising enterprise,” Spencer wrote. “Collectively, we have set priorities, recognized areas of overlap, and ensured that we’re all aligned on the most effective alternatives for development. As a part of this course of, we’ve got made the painful choice to scale back the scale of our gaming workforce by roughly 1900 roles out of the 22,000 folks on our staff.”
Microsoft was lastly in a position to shut its $69 billion acquisition of Activision Blizzard in 2023. Some of these strikes typically result in some layoffs because of the “overlap” referred to by Spencer, though it is unclear what portion of the 1,900 layoffs are attributable to that. This determine quantities to nearly 9% of all Xbox staff.
The one particular particular person we all know who will not be with the corporate is Mike Ybarra, Blizzard’s president, who shared the information on Twitter/X. In keeping with The Verge, Blizzard’s beforehand introduced survival sport has additionally been canceled on account of these layoffs.
I need to thank everybody who’s impacted at the moment for his or her significant contributions to their groups, to Blizzard, and to gamers’ lives. It’s an extremely laborious day and my power and help will likely be centered on all these superb people impacted – that is on no account a mirrored image…
— Mike Ybarra 🎄 (@Qwik) January 25, 2024
Layoffs have been felt all through the gaming trade recently, as regardless of 2023 being an enormous 12 months for blockbuster online game releases, corporations throughout the globe have been chopping jobs.
This week alone, THQ Nordic and Embracer subsidiary Black Forest Video games reportedly minimize 50% of its workforce, Outriders developer Individuals Can Fly is ready to lose 30 staff, and within the wake of Riot shedding 530 staff, its publishing label Riot Forge has been shut down.