Microsoft is looking to boost profits, and one way to do that is by cutting back. We’ve had rumors in the past that suggested this was coming. More specifically, there was word that news would officially come out today, and that’s exactly what happened. The first few Xbox layoffs have been unveiled, and we expect that more will be confirmed later on.
According to Bloomberg, Microsoft announced that a total of 9,000 workers companywide would undergo layoffs. Just how many specifically is tied to the gaming division remains to be seen. However, the report goes on to state that Xbox layoffs so far have hit King and ZeniMax. While we don’t know how many are affected at ZeniMax, Bloomberg notes that King will see 10% of its staff cut, which accounts for about 200 jobs.
Meanwhile, it’s noted by Windows Central that they have gained access to the email that Xbox head Phil Spencer sent to employees. According to the memo, it’s noted that Xbox currently has more players, games, and gaming hours than ever before. Likewise, he feels that their roadmap has never looked stronger. However, this was due to the hard choices made in the past and the same hard choices they are making today to ensure continued growth.
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. – Phil Spencer Memo (Windows Central)
News about who is affected by these layoffs will be shared over the next few days as HR works with employees to finalize severance plan benefits. So, we imagine that there will be more news coming out about which studios have seen a sudden drop in staff. Those who are losing their jobs are encouraged to explore available positions within the company and apply. It’s stated that those applications will be given priority review.
