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.
New Wave of Layoffs at Microsoft
And it’s not the first one in 2024. If you recall, in January, Microsoft laid off 1,900 employees, and some time later it was explained that these were difficult decisions due to a lack of growth in the sector.But the hardest hit came in May, when Tango Gameworks, the studio behind Hi-Fi Rush and Ghostwire: Tokyo, closed its doors.
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.
Phil Spencer Statement
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.”
There’s no doubt that an acquisition like Activision Blizzard’s can force these kinds of decisions. However, once again, it seems the industry is becoming more unstable and increasingly unfair to workers.For this reason, comments like those from Chris Deering, former president of Sony Europe, have not been well-received in recent days. In 2024 alone, Xbox has laid off more than 2,500 workers, not counting studio closures like Tango Gameworks.
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
