Microsoft is cutting 1,900 staff from its video game workforce, sources have told IGN.
In a message to staff viewed by IGN, Xbox boss Phil Spencer said Microsoft will provide “full support to those who are impacted during the transition, including severance benefits informed by local employment laws.” IGN has asked Microsoft for comment.
The layoffs come following the $69 billion acquisition of Call of Duty owner Activision Blizzard.
Here’s Spencer’s memo in full:
“It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.
“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.
“Looking ahead, we'll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I'm as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.
“Phil.”
The cuts come after a recently held showcase in which Xbox previewed a number of upcoming exclusive games, such as MachineGames' Indiana Jones and the Great Circle, Obsidian's Avowed, Ninja Theory's Hellblade 2, and Oxide Games' Ara: History Untold.
Layoffs are sweeping the video game industry, with a number of high-profile studios cutting staff or shutting down. In stark contrast to a year of blockbuster video game hits, one of the biggest ongoing industry trends in 2023 was the prevalence of mass layoffs, and they have continued into 2024. While actual figures are difficult to get ahold of, estimates suggest the number of workers laid off in games last year approached or exceeded 10,000, and 2024 isn't looking much better. A recent GDC survey of developers suggests one-third of all game developers were impacted by layoffs last year, either directly or by witnessing them happen at their company.
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