Microsoft has issued a round of mass layoffs that’s impacted as many as 9,000 employees following a few early warning signs. Xbox has been hit particularly hard by the layoffs, although exact numbers and which divisions have been affected are unknown at the time of writing. Furthermore, multiple games that were in the works at Xbox Game Studios have been cancelled including Rare’s Everwild and a new MMORPG from The Elder Scrolls Online maker Zenimax Online Studios.
As reported by Variety, Microsoft Gaming chief Phil Spencer sent a memo out to staff today confirming the mass layoffs at Xbox. “To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft’s lead in removing layers of management to increase agility and effectiveness,” said Spencer. “Out of respect for those impacted today, the specifics of today’s notifications and any organisational shifts will be shared by your team leaders in the coming days.”
We’ve gotten trickles of updates on which companies had been affected. Bloomberg’s Jason Schreier reports that Zenimax Online Studios was working on a new MMORPG that has now been cancelled as part of the Xbox layoffs. The game, codenamed Blackbird, had apparently been in development since 2018. Job cuts are expected at Zenimax Online Studios.
Bloomberg also reported that Candy Crush creator King will see 10% of its employees terminated, which amounts to around 200 people.
Things only seem to get worse from here. Sources told Video Games Chronicle that Everwild, an original IP from Rare that had been in development for a decade and was initially announced in 2019, had also been scrapped in the shuffle. Several employees at Rare are likely to lose their jobs as part of the layoffs.
Spencer continued in his memo:
“I recognise that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we’re seeing currently is based on tough decisions we’ve made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritise the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.”
Mentioning that your platform has “never looked stronger” before proceeding to terminate employees is not a good look, as you can imagine. We’ll keep you updated on more information as soon as it becomes available.
Source: Variety
