Layoffs at Microsoft will affect its video game division. It was revealed today that the company has laid off 10,000 people, including Bethesda Game Studios, 343 Industries, and Xbox workers. This was shared by renowned journalist Jason Schreier in a Bloomberg article detailing the event. Schreier pointed out that some of the affected employees are veterans that have been part of Xbox for over a decade.
It seems like the actual scale of the firings is still unknown in regards to how it affected the video game divisions of the company. Representatives at Microsoft have declined to comment on the number of Xbox employees that have been let go of their positions as of this moment. The actual layoffs are set to happen at the end of the third fiscal quarter, meaning before March 31 of 2023. Bloomberg also points out that several other sections of the company are being hit hard, such as the HoloLens team, but that the tech company is still planning to hire staff for “competitive and strategic” areas, like artificial intelligence.
What caused the layoffs at Microsoft?
VGC has revealed some of the reasons why this decision has taken place. Satya Nadella, CEO of Microsoft, wrote an internal message to employees in which the event is explained as a response to the macroeconomic conditions and changes in the consumer’s priorities.
“These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts,” wrote Nadella.”We’re living through times of significant change, and as I meet with customers and partners, a few things are clear First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.”
The CEO ends his message alluding to their “caution” due to the economic recession that has currently presented itself in certain parts around the world, and that is making its way to many other economies.