Microsoft has shared a statement about its upcoming mass layoffs, with Xbox boss Phil Spencer reportedly confirming in a memo to staff across the gaming division that some of the cuts will affect them specifically.
The gaming layoffs are part of a huge round of Microsoft cuts where it’s understood four per cent of the company’s entire workforce will be slashed, which equates to more than 9,000 employees.
In a statement shared with indy100, a Microsoft spokesperson said: “We continue to implement organisational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace.”
Microsoft says it is making the layoffs to meet business demands, reduce layers, ensure there are fewer managers and allow employees to focus on more meaningful work.
George Broussard, who’s best known for his work on Duke Nukem 3D, claims up to 2,000 people could be affected and “entire studios may be shuttered”.
IGN reports Bethesda is one of the studios that will be affected by the cuts, with Candy Crush developer King heavily affected, according to its sources.
Xbox’s chief has confirmed layoffs are looming / Xbox
In the memo reportedly sent internally (seen by both IGN and Variety), Spencer said: “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 organisational shifts will be shared by your team leaders in the coming days.”
Spencer went on to say “we have more players, games and gaming hours than ever before” but that the changes are being made to “prioritise the strongest opportunities” and cut out what isn’t working well.
“Prioritising our opportunities is essential but that does not lessen the significance of this moment,” he added. “Simply put, we would not be where we are today without the time, energy and creativity of those whose roles are impacted.”
The layoffs are the fourth round of major cuts to Microsoft’s gaming division in the past 18 months alone.
indy100 has contacted Bethesda and King for further comment.
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- Xbox mass layoffs reportedly imminent – what does it mean for gamers?
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