Microsoft has carried out one other spherical of heavy cuts to its Xbox gaming workforce following the acquisition of Activision Blizzard. On this newest spherical of layoffs, Microsoft is eliminating about 650 positions from its gaming workforce, however no extra studios have closed and no different video games are canceled because of the transfer, which Microsoft Gaming CEO Phil Spencer confirmed on September 12. In January, Microsoft lower 1,900 gaming positions, bringing the variety of cuts to the corporate to about 2,550 for the reason that $75.4 billion deal to purchase Activision Blizzard closed in October 2023.
In a memo to staff obtained by IGN, Spencer stated the cuts got here as a part of Microsoft’s effort to align the corporate’s “post-acquisition workforce construction and managing our enterprise.”
The roughly 650 layoffs from Microsoft Gaming “principally” influence the “company and supporting” capabilities of the enterprise, the corporate stated. Affected staffers within the US are getting severance, prolonged healthcare, and outplacement companies. Packages for these outdoors of the US can be found, too, and differ by location.
“With these modifications, our company and supporting groups and assets are aligned for sustainable future progress, and may higher assist our studio groups and enterprise models with packages and assets that may scale to satisfy their wants,” Spencer stated. “Individually, as a part of operating the enterprise, there are some impacts to different groups as they adapt to shifting priorities and handle the lifecycle and efficiency of video games. No video games, units, or experiences are being cancelled and no studios are being closed as a part of these changes right now.”
In March, Spencer stated the preliminary spherical of job cuts introduced in January had been obligatory to assist Xbox develop into a worthwhile enterprise following the blockbuster buyout of Activision Blizzard.
Along with shedding employees, Microsoft closed a few of its studios fully earlier this yr, together with Arkane Austin, Tango Gameworks, Roundhouse Games, and Alpha Canine Studios. Tango Gameworks was saved by PUBG studio Krafton, however the others have closed for good.
2024, like 2023 earlier than it, has been a brutal for layoffs within the online game builders and employees at Microsoft and plenty of different corporations. Some estimates counsel there have been greater than 11,000 layoffs within the online game sector in 2024 alone. A former PlayStation govt just lately shared his ideas on the cuts, claiming they aren’t resulting from company greed alone, however are as a substitute a part of common macroeconomic circumstances. Ubisoft, Bungie, and plenty of others have additionally carried out dramatic cuts in 2024.