Microsoft is laying off approximately 9000 employees, as reported by the Seattle Times, and unfortunately, the company’s game development studios are affected.
The Seattle Times reports that the layoffs impacted multiple divisions, and information is trickling out piecemeal from multiple sources, including Windows Central and Bloomberg‘s Jason Schreier.
The layoffs included mobile publisher King, which was acquired alongside Activision Blizzard an is cutting about 200 jobs. Rare has been impacted as well, with the cancellation of Everwild.
A MMORPG project in the works at The Elder Scrolls Online studio Zenimax Online Studios has been canceled, and ESO’s Game Director Matt Firor himself is departing the company, marking the loss of a legendary developer in the genre.
Call of Duty studios like Raven are impacted as well, and Forza Motorsport developer Turn 10 lost almost 50% of its employees.
The Initiative has been closed and the game it was developing – a Perfect Dark title – has been canceled.
Below, you can check out a memo sent to employees by Microsoft Gaming CEO Phil Spencer (shared by The Verge), acknowledging the gravity of the decision and the debt owed to those impacted.
He also mentions that developers impacted will receive “severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources.”
“Today we are sharing decisions that will impact colleagues across our organization. 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. Out of respect for those impacted today, the specifics of today’s notifications and any organizational shifts will be shared by your team leaders in the coming days.
I recognize 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 prioritize 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.
Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.
HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Thank you to everyone who has shaped our culture, our products, and our community. We will move forward with deep appreciation and respect for all who have contributed to this journey.”
This comes after the end of Microsoft’s fiscal year, with the latest financial results showing significant increases in revenue from the company’s gaming division.
As the situation may still be developing, we will update this post if further information surfaces.
