Microsoft Lays Off 650 Employees As Part of a "Reorganization"
Sep. 12, 2024Microsoft Lays Off 650 Employees As Part of a “Reorganization”
Microsofthas confirmed that 650 people from its gaming division will be laid off as a result of the acquisition ofActivision Blizzard,although it won’t affect game development, hardware, or experiences.
Other teams like Arkane Austin, Alpha Dog, and Roundhouse Studios were relocated to other Xbox studios. Unfortunately, as the saying goes, bad news comes in threes.According to The Verge, Microsoft has laid off 650 employees from its gaming division, and the explanation couldn’t be clearer: it’s due to the Activision Blizzard King acquisition, as such a large purchase requires an even bigger restructuring.Phil Spencer, former president of Xbox and current head of Microsoft Gaming, communicated the difficult decision to employees this morning.However, they clarified that these layoffs do not affect any studio (there will be no closures), game, device, or experience currently in development within the ecosystem.
The Verge has accessed the official statement published by Phil Spencer. In it, the head of the gaming division confirms that the layoffs are due to the restructuring that comes with the Activision Blizzard acquisition.Most of these positions (650) are related to corporate support roles in Microsoft Gaming and are not connected to the active development of games, products, or experiences.
Microsoft also confirmed that the current layoffs will not result in studio closures or the cancellation of Xbox/Windows games or new hardware.Here are key excerpts from the statement:
“As part of the alignment of our team structure following the acquisition and the management of our business, we’ve made the decision to eliminate approximately 650 positions in Microsoft Gaming (mostly corporate and support functions) to organize our business for long-term success.”“As part of managing the business, there are some impacts on other teams as they adjust to shifting priorities and manage game life cycles and performance. No games, devices, or experiences will be canceled, and no studios will be closed as part of these adjustments today.”“Throughout our team’s history, we’ve had great moments and tougher ones. Today is one of those tough days. I know going through more changes like this is difficult, but even in the hardest moments, this team has shown its ability to come together with care and kindness as we continue to serve our players.”
Stay tuned for this and other news likeMicrosoft Announces The Closure Of Studios & Further Cuts At Bethesdaand alsoXbox Announces a Presentation at the Tokyo Game Show
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