Microsoft is Cutting Another 650 Jobs at Xbox

Microsoft is Cutting Another 650 Jobs at Xbox

As a longtime Xbox fan with countless hours spent on the virtual battlefields and magical worlds that Microsoft‘s gaming division has so expertly crafted, it’s disheartening to witness these recurring layoffs within the company. I remember the thrill of the first Halo game, the camaraderie forged in multiplayer sessions with friends, and the anticipation of each new Xbox console release.


Microsoft has declared that approximately 650 positions will be eliminated from Xbox, making it the second time their gaming division is affected this year. This comes after nearly 2,000 job reductions were made earlier in the year.

Phil Spencer, head of Xbox at Microsoft, sent a company-wide email announcing layoffs. He explained that these reductions are part of an effort to adjust the team structure following the acquisition of Activision Blizzard, which was officially merged with Microsoft last year.

According to reports from Game File via VGC, the email sent out states that as part of reorganizing our company structure post-acquisition and ensuring long-term success, we will be removing around 650 positions within Microsoft Gaming, primarily focusing on corporate and support roles. (Spender’s original wording)

Over the course of our team’s existence, there have been both triumphant and tough periods. Today, I must admit, falls into the category of challenging days, Spencer remarked. I understand that undergoing further changes can be taxing, but in the face of adversity, this team has consistently demonstrated unity, empathy, and compassion towards one another as we strive to keep providing top-notch service for our players.

Spencer further guarantees that the job cuts won’t result in the cancellation of any “video games, gadgets, or interactive events.” Here is the complete email addressed to Microsoft staff, which you can read more about on IGN, available below.

Over the last year, our primary objective has been to ensure a smooth transition while onboarding new teams and providing them with optimal working conditions. To streamline our company structure post-acquisition and enhance our overall business management, we have chosen to reduce around 650 positions within Microsoft Gaming, primarily focusing on corporate and support roles. This move is aimed at structuring our business for long-term prosperity.

I understand this isn’t easy news to take in. We greatly appreciate the work our colleagues have done, especially those who are affected by these changes. In the United States, we’re providing them with support packages that include severance pay, extended healthcare coverage, and outplacement services to assist during their transition period. However, the specifics of these packages may vary depending on the location outside the US.

By implementing these updates, our corporate and auxiliary groups will be harmonized for long-term expansion, providing enhanced assistance to our studio teams and divisions through tailored programs and resources. Concurrently, in the course of managing our operations, there may be effects on other teams as they adjust to evolving priorities and handle the development, maintenance, and performance of games. Rest assured, no games, devices, or experiences are being terminated, nor are any studios being shut down during these modifications at present.

Over the course of our team’s journey, we’ve experienced triumphant times and tougher stretches. Today is definitely one of those difficult days. I understand that undergoing more alterations such as this can be demanding, but in the face of adversity, our team has always managed to unite and exhibit empathy and kindness towards each other while striving to maintain our commitment to our players. We value your backing as we confront these changes, and we express gratitude for your understanding and respect for one another.

Phil

In the aftermath of Microsoft’s acquisition of Activision Blizzard for $68.7 billion, job losses at their gaming division have reached over 2,550 since January. This latest wave of layoffs follows a previous round that impacted more than 1,900 employees. Additionally, studios responsible for the games Redfall and Hi-Fi Rush, Arkane Austin and Tango Gameworks respectively, have been closed by Microsoft. However, there’s a glimmer of hope as Tango Gameworks, the developer of Hi-Fi Rush, has been acquired by PUBG owner Krafton, which means we might still see more of Hi-Fi Rush in the future.

Read More

2024-09-12 17:42

Previous post House of the Dragon boss compares dragon-riding to the Force from Star Wars