Microsoft layoffs affect its video game business including producers of Starfield and Halo
To cut expenses amid a general economic recession, the Xbox manufacturer said on Wednesday that it is eliminating 10,000 positions. According to those acquainted with the situation, several employees at Bethesda Game Studios, the studio behind the upcoming Starfield, as well as 343 Industries, the studio responsible for 2021’s Halo Infinite, were impacted. The people, who requested not to be identified because they weren’t permitted to talk in public, claimed that some of those who lost their jobs were veterans who had worked with Xbox for more than decades.
More about Microsoft job cuts
The specific areas of Microsoft that have been adversely affected by these layoffs have been made clearer by additional information through tweets from industry insiders like Jason Schreier.
The decision was speculated earlier and later confirmed by Microsoft Chairman and CEO Satya Nadella in a letter distributed to Microsoft staff members and made public.
Nadella outlined how Microsoft’s spending soared during the pandemic and then decreased afterwards.
Microsoft will consequently remove several roles. By the end of FY23 Q3, which ends March 31, 2023, 10,000 positions will be eliminated even though they only make up less than 5% of the company’s enormous global workforce. Several staff members from Bethesda Game Studios, the studio behind the upcoming sci-fi role-playing game Starfield, The Coalition, the studio behind the Gears of War franchise, and 343 Industries, the studio behind Halo Infinite, are also represented.
CEO of Microsoft speaks about it
According to the CEO of Microsoft, Satya Nadela, at first, Microsoft will align its cost structure with its revenue and where they see customer demand. Today, they are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 per cent of their total employee base, with some notifications happening today. It’s important to note that while they are eliminating roles in some areas, they will continue to hire in key strategic areas. They understand this is a challenging time for each person impacted. The senior leadership team and he, are committed that as they go through this process, they will do so most thoughtfully and transparently as possible.
Laid-off employees’ take on it
Bloomberg claims that along with Bethesda Game Studios and 343 Industries, a few engineering divisions and Microsoft’s HoloLens business are also affected by the layoffs.
- Gary Waliczek, principal engineer for Xbox growth and loyalty, on Wednesday wrote that the cutbacks have an impact on gaming, which probably affects members of my team, later the remark was deleted.
- A Bethesda PR manager named Renee Sogueco wrote on Twitter that the Microsoft layoffs led to her termination from Bethesda Softworks.
- Along with Sam Luangkhot, a community manager for The Elder Scrolls Online, Jesse Stipek, a video producer for 343 Industries, and Kevin Schmitt, a senior designer on Halo Infinite, also confirmed that they had all lost their jobs.
- Ben Rudolph, who has worked at Microsoft for 15 years, is leaving the organisation. On his Twitter page, he announced the information. Before the revelation of today, Rudolph served as Microsoft’s global creative director.
This is a hard time for the employees. The company has lost a lot of talented brains and its impact will be witnessed soon. Fans of these blockbuster game-producing companies have shown their disappointment towards this layoff. We hope that things become better for everyone affected by this.