Following the initial staff cuts that Microsoft has carried out, with a special impact on developers and services related to games and Xbox, the technology giant has now decided to continue with this strategy and lay off 3% of the company’s gaming division staff.
Specifically, it involves the dismissal of 650 workers of this division that became oversized after the acquisition of Activision-Blizzard at the beginning of 2022, one of the largest purchase-sale operations in the history of the technology sector.
The positions held by the employees who will have to leave the company were related to functions “corporate and support”. Therefore, according to the CEO of the Microsoft Gaming division Phil Spencer, will not affect the development of any games or devices or the user experience for consumers.
It remains to be seen whether this is the final round of layoffs or whether the company will continue to make “staff adjustments” in the coming months within its Microsoft Gaming division.
Below we leave you with Phil Spencer’s internal letter:
Over the past year, our focus has been on minimizing disruption while welcoming new teams and enabling them to do their best work. As part of aligning our team structure following the acquisition and managing our business, we have made the decision to eliminate approximately 650 positions at Microsoft Gaming — primarily in corporate and support roles — to organize our business for long-term success.
I know this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are being impacted. In the U.S., we are supporting them with exit packages that include severance pay, health insurance extension, and outplacement services to assist in their transition; outside the U.S., packages will vary by location.
With these changes, our corporate and support teams and resources are aligned for sustainable growth going forward, and can better support our studio teams and business units with programs and resources that fit their needs. Separately, as part of running the business, some teams will also be impacted as they adapt to changing priorities and manage the lifecycle and performance of games. No games, devices, or experiences are being cancelled, and no studios are closing as part of these adjustments today.
Throughout our team’s history, we’ve had great times, and we’ve also had challenges. Today is one of those difficult days. I know going through more changes like this is difficult, but even in the toughest times, this team has been able to come together and show care and kindness to one another while continuing to deliver the best for our players. We appreciate your support as we navigate these changes and thank you for your compassion and respect for one another.
Phil
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