Microsoft is making another round of sweeping layoffs across its businesses of around 4% of its worldwide employees, with Phil Spencer sending an internal memo which has immediately leaked publicly.
The memo has been reviewed and published by IGN, who also had a source relay that Candy Crush developer King has been hit particularly hard, and that Bethesda’s London offices and marketing team are also affected.
In total, Microsoft is making layoffs of around 4%, per The Seattle Times, or around 9,000 employees from the worldwide headcount of 228,000 as of June 2024. Individual teams and employees will be given specifics of what is happening over the coming days. This comes shortly after 6,000 employees were let go in May and June.
In Spencer’s memo, he said that “we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management”. He also acknowledges that this is at a time when Microsoft’s gaming business has a wider reach than ever before, he blows smoke up a future roadmap which has “never looked stronger”, but asserts that “The success we’re seeing currently is based on tough decisions we’ve made previously,” and that “a key part of that strategy is the discipline to prioritize the strongest opportunities.”
This all sucks, and once again feels more callous than it really needs to be for a company that continues to be obscenely wealthy and profitable. We will have to wait and see the specifics of the job cuts, but our thoughts go to those affected.
The silver lining is that Microsoft should be able to give supportive exit packages, including pay and healthcare coverage, while anyone being let go will have priority review for any open positions within Microsoft that they could apply for.
The full message from Phil Spencer is as follows:
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.
I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. 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. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental — it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.
Phil
Source: The Seattle Times, IGN
