Impacted developers and those empathizing from afar have continued to react to the recent mass layoff by Microsoft that has thrown thousands of employees out of work. The extent and impact of the layoffs in the game industry continue to unfold days after the initial announcement.
Just to recap, several Microsoft-owned studios were impacted by the latest round of layoffs. However, the most severe impact was felt by The Initiative, the studio developing Perfect Dark. Here is a rundown of everything that happened.
- The Initiative was shut down and Perfect Dark was cancelled
- ZeniMax Online Studios suffered an undisclosed number of layoffs and Project Blackbird, currently in development in the studio, was cancelled
- Project Everwild at Rare was cancelled, leading to the exit of several high-profile studio heads
- King lost 10% (or around 200 people) of its workforce
- High Moon Studios, which assists in Call of Duty Warzone development, lost an undisclosed number of employees
- An undisclosed number of employees were let go at Halo Studios
- Raven Software suffered an undisclosed number of layoffs
- Sledgehammer Games was hit by an undisclosed number of layoffs
- Turn 10 Studios also suffered an undisclosed number of layoffs, which Bloomberg believes is up to half the entire team.
President of Electronic Arts Japan, Sean Noguchi, is one of the high-profile figures to comment on the latest Microsoft layoffs, and he was critical in his opinion. In a lengthy post on social media in reaction to the layoff at Xbox studios, Noguchi accused foreign companies of “increasingly demanding short-term results from large-scale investments,” adding that in most cases, “a change in direction is made to meet shareholder expectations before sufficient time has been invested”.
“The gaming industry is supported by each and every creator and staff member who has diligently worked on development at the forefront. As someone in the same industry, I feel deep pain regarding this decision. The frustration of something built over a long time not seeing the light of day and the reality that gamers who were looking forward to it cannot even experience it—both are truly regrettable.”
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In addition to his views, the pain is not only felt by those who were laid off but also by those left behind. Video game workers who survived studios hit by mass layoffs have frequently expressed how difficult it is to deal with losing their best friends and those they have connected deeply with in their workplace. In addition to that, the remaining developers usually find themselves working under pressure, not knowing when it will be their turn to be axed.
The email sent to all Microsoft Gaming employees
The email sent by Microsoft Gaming head Phil Spencer to all gaming employees explained the reason for the strategic decision that led to the layoffs. Here is the full email:
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.
What do you think is the main driving force behind the never-ending waves of Microsoft mass layoffs? Share your thoughts in the comment box below.
