Major layoffs are rolling across Microsoft today, impacting game developers within Xbox across several studios and the projects they’re working on, even as an executive at the company told staff more gamers are playing Xbox than ever before.
According to The Seattle Times, 9,000 employees, or 4 percent of Microsoft’s workforce, are affected by the cuts, which started Wednesday morning. The full scope of layoffs within Microsoft’s gaming divisions are still unknown.
“We continue to implement organizational and workforce changes that are necessary to position the company and teams for success in a dynamic marketplace,” Microsoft spokesperson Jeff Jones told WIRED. The company says that although gaming is impacted, it does not make up the majority of layoffs, and these cuts will affect people in different regions, tenure, and teams.
In a message to staff seen by WIRED, Microsoft Gaming CEO Phil Spencer said Xbox is following “Microsoft’s lead in removing layers of management to increase agility and effectiveness … I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before.” Employees whose roles are being eliminated are being encouraged to apply for other positions across Microsoft gaming, “where their applications will be given priority review.”
Spencer added that the company 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.” Gaming teams across Microsoft are still learning how their roles will be affected, with some sources saying they have staff meetings scheduled later today.
