Microsoft is expected to experience another wave of layoffs next week. The development division is affected.
What is happening at Microsoft? A report by Jason Schreier for Bloomberg anticipates another round of layoffs for Microsoft employees.
This affects the Xbox Gaming Division, which includes Xbox Game Studios among others. A significant portion of the workforce is expected to be laid off.
Layoffs are unfortunately not a rarity in the current gaming industry. Studios are constantly being downsized or completely shut down. In Microsoft’s case, this would be the fourth wave of layoffs in the past 18 months. For example, in January 2024, 1,900 employees were laid off.
The community believes it knows the reason for the problem
What does the community think? On Reddit, the news is already being discussed vigorously. Many users express their regret and emphasize how depressing it must be to constantly fear the next wave of layoffs. Even if one may keep their job at the moment, things could look different in a few months.
That there will again be numerous layoffs surprises few. Many users cite Microsoft’s large acquisitions as the reason. Expensive acquisitions like that of Activision Blizzard in 2023, which cost $69 billion, would be creating financial pressure.
This is what users think:
- “The fourth layoff in 18 months? If they keep this up, there will be no employee left in the gaming department,” writes Muakaya18.
- “I guess the billion-dollar acquisitions didn’t bode well for the bottom line. No game developer has made so many layoffs in such a short time. Too bad Phil (Spencer) & Co. at Microsoft are always protected,” finds IsamuAlvaDyson.
- “I really wonder what the point of these acquisitions was in the end. They hardly make exclusives from these companies anymore, have either closed some studios or laid off a boatload of people, and it feels like they hardly try anymore,” says RJE808.
- “After Tango Gameworks and Arkane Austin, no layoff from Xbox will shock me anymore. It’s still incredibly annoying, but that’s just normal for them,” writes alyssa-is-tired.
There is still no official statement from Microsoft on this matter. Next week will show how extensive the layoffs really are. In any case, it is an unpleasant situation for those affected. Other studios are not faring any better. Currently, news is circulating about a game that will not be released after years of work: A game wanted to be better than Minecraft, but after 10 years of development, the studio suddenly closes and fans receive nothing
