The new year brought less-than-ideal news for some, as Microsoft disclosed an anticipated 1,900 job cuts within its gaming division. Phil Spencer, the CEO of Microsoft Gaming, conveyed this information through a memo, framing the layoffs as part of the company’s broader “execution plan.” The strategic goal is to mitigate redundancies within the organization, as reported by CNBC.
This significant workforce reduction comes in the wake of Microsoft’s acquisition of gaming giant Activision Blizzard for $69 million a few months ago. According to insights from an IGN source, the gaming division had already witnessed substantial cuts to its marketing budget before the recent announcement of nearly 2,000 layoffs. This downsizing initiative follows a showcase by Xbox, featuring previews of upcoming games like MachineGames’ “Indiana Jones and the Great Circle,” Ninja Theory’s “Hellblade 2,” and Oxide Games’ “Ara: History Untold.”
The impacted employees represent almost 9% of Microsoft’s gaming division. While undoubtedly a challenging situation for those affected, Phil Spencer emphasized the company’s commitment to navigating the process with thoughtfulness. In his memo, he acknowledged the contributions of the laid-off individuals to the success of Activision Blizzard, ZeniMax, and the Xbox teams, expressing gratitude for their creativity, passion, and dedication.
Spencer assured that the company would provide full support during the transition, including severance benefits in accordance with local employment laws. The affected individuals will be duly notified, and a call for respectful and compassionate treatment of departing colleagues was issued in alignment with Microsoft’s values.
Microsoft’s announcement adds to a series of tech industry layoffs earlier in the year, including those from Riot Games, Discord, and TikTok. Cumulatively, these layoffs across various organizations surpassed 10,000 people, according to CNBC.
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