Microsoft has joined the ranks of major tech companies announcing large-scale layoffs, with 1900 roles being cut in its gaming division.
New Delhi,UPDATED: Jan 26, 2024 11:26 IST
It seems like Silicon Valley is bracing for another wave of layoffs, as many major tech companies are firing employees in large numbers. Following the job cuts announced by Google, Meta, Amazon and other Silicon Valley giants, Microsoft has now revealed a new round of layoffs in its gaming division, which includes Activision Blizzard and Xbox. The layoffs will affect 1900 roles out of 22,000, cutting roughly 8 percent of the overall Microsoft Gaming division. The layoffs also follow the exit of a major executive of Microsoft.
Here is the story in 5 points:
Microsoft cuts 1900 jobs in gaming division: Microsoft has announced a fresh round of layoffs in its gaming division, which includes Activision Blizzard and Xbox. The company has reduced the size of its gaming workforce by approximately 1900 roles out of the 22,000 people on its team. The company said it made the painful decision as part of a process to streamline its operations and focus on new projects.
“As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 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," said Microsoft Gaming CEO Phil Spencer in an internal memo to employees.
Blizzard President and Chief Design officer depart: The layoffs and restructure changes at Microsoft are also affecting some prominent figures within Blizzard, the game developer behind popular titles such as World of Warcraft and Overwatch. Along with the layoffs, Blizzard president Mike Ybarra and chief design officer Allen Adham have chosen to leave the company after having played crucial roles in its leadership and innovation.
Microsoft’s game content and studios president Matt Booty confirmed these developments in an internal memo and stated that a new president for Blizzard will be appointed next week.
“Mike previously spent more than 20 years at Microsoft. Now that he has seen the acquisition through as Blizzard’s president, he has decided to leave the company. As we move forward, we will continue to build on the positive momentum that Mike created and strive to continue exceeding the expectations of Blizzard’s playersâ€æ Additionally, Allen Adham, Blizzard’s Chief Design Officer, is leaving the company. As one of Blizzard’s co-founders, Allen has had a broad impact on all of Blizzard’s games. His influence will be felt for years to come, both directly and indirectly, as Allen plans to continue mentoring young designers across the industryâ€æ. The new Blizzard President will be announced next week,” wrote Matt Booty in his internal memo.
Blizzard cancels survival game project: As part of the organisational changes that led to the layoffs and resignations of some key executives, Microsoft has also decided to scrap a survival game that Blizzard was working on. Booty said that the people who were involved in this project will be assigned to other exciting opportunities that are in the initial stages of development at Blizzard.
Microsoft offers support to impacted employees: Microsoft said it is committed to navigating the layoff process as thoughtfully as possible and offering support to the impacted employees. Those who are affected are being informed in meetings starting today. Those who are set up to work from home and would prefer to, can work remotely today. Due to time zones and local holidays, some impacted employees in APAC and EMEA will be informed later this evening and into early next week. After the notifications are complete, leaders will bring their teams together. Microsoft said it is confident in its team’s ability to create and nurture the games, stories and worlds that bring players together.
Microsoft follows broader trend of tech layoffs: Microsoft is not alone in cutting jobs, as several other tech giants have also resorted to layoffs in recent times, according to layoffs.fyi, a site that tracks tech layoffs. Google, YouTube, Amazon, Meta, and TikTok have all announced job cuts in various departments, such as hardware, engineering, media, film, and technical program management impacting hundreds of employees. Some of the reasons cited for these layoffs include the need to reorganise, focus on key projects, cope with the slowdown in ad revenue, and pursue new visions.
The layoffs at Microsoft and other tech companies also reflect the challenges and opportunities in the tech industry, which has been impacted by the pandemic, the shift to cloud computing, the rise of automation, and the need for innovation. Microsoft said it aims to adapt to these changes and grow its business by bringing more games to more players around the world. The company last announced big layoffs a year ago, affecting 10,000 employees.
Published By:
Divya Bhati
Published On:
Jan 26, 2024
English (US) ·