Microsoft is carrying out significant layoffs across its gaming divisions, affecting around 9,000 employees – about 4% of the company’s workforce. The cuts started on Wednesday morning and will impact various studios working on projects, despite Microsoft Gaming CEO Phil Spencer saying that gamers are playing Xbox more than ever before.
Spencer stated that the changes aim to increase agility and effectiveness by removing layers of management. However, this move comes as a time when the gaming industry is thriving, with more players, games, and gaming hours than ever seen. Employees whose roles are being eliminated will be encouraged to apply for other positions across Microsoft Gaming, which will receive priority review.
Affected studios include The Initiative, Perfect Dark developer, which has canceled its revival of the 2000 first-person shooter game, as well as Rare’s Everwild, an action-adventure game that was in development for over a decade. Other impacted studios are ZeniMax and King, with layoffs reported for their respective employees.
The company is prioritizing its strongest opportunities while protecting what is currently thriving. Microsoft will provide severance plan benefits to the affected employees, including pay, healthcare coverage, and job placement resources, as HR works directly with those impacted to support their transition.
Source: https://www.wired.com/story/layoffs-game-cancelations-hit-xbox-as-microsoft-cuts-9000-jobs