Microsoft will cut 1,900 staff from its video game workforce, sources tell IGN.
In a message to staff seen by IGN, Xbox head Phil Spencer said Microsoft will provide “full support to those affected during the transition, including severance benefits under local employment laws.” Then he said. IGN has reached out to Microsoft for comment.
The job cuts follow the departure of former CEO Bobby Kotick, who was involved in the company’s controversial $69 billion acquisition of Call of Duty owner Activision Blizzard. Microsoft’s current value is over $3 trillion, making it his second company to cross that threshold.
Spencer’s full memo is below.
“It’s been a little more than three months since the teams at Activision, Blizzard, and King joined Microsoft. As we move into 2024, Microsoft Gaming and Activision Blizzard’s leadership is committed to delivering sustainable cost savings that support our entire growing business. We are committed to aligning strategy and execution plans with structure. We work together to set priorities, identify areas of overlap, and ensure everyone understands the best opportunities for growth. We have been able to keep pace.
“As part of this process, we made the difficult decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the team’s 22,000 people. Everyone directly affected by these reductions plays a critical role in the success of Activision Blizzard, ZeniMax, and the Xbox team and should be proud of everything we’ve accomplished here. We are grateful for the creativity, passion, and dedication they bring to our games, players, and colleagues. We are committed to providing those affected during the transition with the support of local employment laws. We will provide full support, including severance benefits based on the company’s policies. Employees whose roles will be affected will be notified and we will treat departing colleagues with respect and consideration, in line with our values. Thank you for your understanding.
“Looking to the future, we will continue to invest in areas that support our strategy to grow our business and bring more games to more players around the world. Despite these challenging times, we remain as confident as ever in your ability to create and nurture the games, stories, and worlds that connect players.
“fill.”
Blizzard Entertainment President Mike Ybarra has announced that he will be leaving the company as part of the company’s workforce reductions. Ybarra, a former Xbox executive, joined Blizzard in 2019.
Mr. Ybarra’s full statement is below. Twitter / ×:
“I want to thank everyone affected today for their tremendous contributions to the lives of our team, Blizzard, and our players. This is an incredibly difficult day, but my energy and support I’m going to focus on all the amazing people who have influenced me. I don’t think it’s a reflection of your amazing work. If there’s anything I can do to help, connect with you, or have any recommendations, please DM me.
“Dear Blizzard Community: I also want to let you all know that today is my last day at Blizzard. I have spent an incredible amount of time leading Blizzard and being a part of the team shaping its future. After more than 20 years at Microsoft and the acquisition of Activision Blizzard, it was time for me to (again) become Blizzard’s biggest fan from the outside.
“Thank you to the amazing team at Blizzard. Words cannot express how I feel for you. You are amazing. Keep doing great things and keep Blizzard always blue, and our players are at the forefront of every decision. Please continue.”
“To all those affected today: I am available for your consultation and I understand how difficult today’s news is. My heart is with each and every one of you. ”
Blizzard’s chief design officer and co-founder Allen Adham is also leaving the World of Warcraft, Diablo, and Overwatch developer. The survival game “Odyssey”, which has been in development for a long time, has been cancelled. In December 2022, Ibarra said the team working on it has doubled year-over-year, and there are plans for further growth. Tweets from out-of-work Blizzard staffers suggest that the entire survival game team has been fired.
Sources told IGN that Microsoft’s games team was already suffering significant cuts to its marketing budget before staff were informed of the layoffs.
The Communications Workers of America (CWA), which represents hundreds of gaming workers across Microsoft subsidiaries, including ZeniMax Studios and Activision Blizzard, told IGN that the layoffs do not affect the workers they represent. Ta.
CWA said in a statement that it “continues to support workers at Microsoft and across the video game industry who want to have a union voice in the workplace.”
“Layoffs in the video game industry are becoming the norm, even at companies that continue to make huge profits,” said Wayne Dayberry, ZeniMax Workers United-CWA member and senior quality assurance tester. ” he said. They’re so passionate about their work, they’re the ones who actually make these video game companies successful, and they’re the first to be affected by layoffs and layoffs. Companies will claim we are all family, but families don’t lay off people or outsource. Either way, it is clear that the only way forward is for us all to come together as workers to protect each other.
“Union representation cannot always prevent layoffs, but through union representation and the bargaining process, video game workers can secure greater transparency and policies that put our needs first, including layoff protections.” That’s why we want all video game workers to join our union.”Together, we can set new standards for the industry and make it safe from exploitation.” You can do the work you are passionate about. ”
This reduction means that Xbox will be able to offer a number of upcoming exclusive games, including MachineGames’ Indiana Jones and the Great Circle, Obsidian’s Avowed, Ninja Theory’s Hellblade 2, and Oxide Games’ Ara: History Untold. It was announced after a recently held showcase to preview the. Last year, in a leadership shakeup at Xbox, Sarabond was promoted to president of his Xbox and Matt Booty was promoted to president of game content and studios.
Layoffs are rampant in the video game industry, with many big-name studios cutting staff or closing their doors. In contrast to a year of blockbuster video games, one of the biggest industry trends currently underway in 2023 is an epidemic of mass layoffs, which will continue into 2024. Although actual numbers are difficult to obtain, estimates suggest the number of workers laid off. He had close to or exceeded 10,000 games off last year, and 2024 is unlikely to be much better. According to his recent GDC survey of developers, one-third of all game developers were affected by layoffs last year either directly or by witnessing layoffs at their company.
Wesley is IGN’s UK News Editor. Find me on Twitter @wyp100. Wesley can be contacted at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.