While Microsoft might be one of the biggest companies in the entire world and one of the richest, it’s not immune to layoffs, as the company has announced company-wide job cuts.
Multiple departments are affected, and yes, this involves the gaming (Xbox) division as well, as numerous studios have been hit.
This is one of the biggest mass layoffs in recent memory, as literally thousands of employees are being given the pink slip.
Microsoft Job Cuts Amount To Roughly 9,000 Personnel Affected
The Seattle Times reports that around 4% or roughly 9,000 employees are affected, and this includes various divisions across the software giant, such as sales, marketing, and the gaming sector.
This follows the layoffs that occurred in May and June of this year, which resulted in the dismissal of more than 6,000 employees.
While today’s report highlights a huge number, this isn’t the largest layoff Microsoft has ever conducted, as in 2023, the company let go of 10,000 employees. However, when you factor in the job reductions of the previous months, Microsoft has, in total, eliminated over 15,000 employees this year.
As of June 2024, Microsoft had over 228,000 employees across its various divisions.
Related
All New Xbox Game Pass Games For July, From Dungeons To Half-Pipes
From new releases to classic titles, here’s what’s coming to Xbox Game Pass in July.
According to sources cited by Windows Central, the gaming division has been affected, as has ZeniMax Media, the home of Bethesda, and King, the mobile company acquired by Microsoft as part of its Activision deal.
The report mentions that ZeniMax Media’s marketing team in London, UK, as well as in Maryland in the US are affected, though the damage hasn’t been quantified yet. Phil Spencer’s letter to staff about the layoffs has apparently leaked.
In the letter Spencer sent to Microsoft Gaming employees, it mentions, “Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.”
Spencer’s note acknowledges how there are more people who spend on gaming these days, though he also adds, “Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business.”
HR is said to be working directly with impacted employees when it comes to providing severance plan benefits, job placement and the like. Employees whose roles were cut, are also “encouraged” to explore open positions across Microsoft Gaming where it’s said their applications will be given “priority review.”
Related
Everwild, which was announced in 2019 as in development at Rare, has also been canceled.
The action-adventure game began development in 2014, and after being formally announced in 2019, remained in the dark. It was reportedly rebooted in 2021 following leadership changes. Given the job cuts, the cancellation of a game with troubled development isn’t exactly shocking news.
It’s been a rough year for video games in general. It’s not just Microsoft cutting jobs; even Electronic Arts is reportedly closing its racing division, which the company acquired in 2021 for $1.2 billion. It’s not just big companies that are affected, either, as even smaller studios like The Chinese Room have been hit with layoffs recently.
Hopefully, the studio closures and layoffs will be less prevalent in the latter half of the year. We here at DualShockers wish everyone affected by today’s bad news all the best and hope they land on their feet soon.
Related
GDC Survey Shows More Game Developers Are Impacted By Layoffs Than Ever Before
The recent Game Designers Conference survey for this year shows, among other shocking statistics, that 41% of staff feel impacted by layoffs.
Microsoft
- Date Founded
- April 4, 1975
- CEO
- Satya Nadella
- Subsidiaries
- activision blizzard, Microsoft Studios, Mojang Studios, Microsoft Game Studios, Xbox Game Studios
- Consoles
- Xbox, Xbox One, Xbox 360, Xbox One X, Xbox Series X, Xbox Series X|S
- Services
- Xbox Game Pass
- Headquarters
- Redmond, Washington, United States
