Many people have to leave Microsoft and Xbox right now. There were two major layoffs in January and May. Now, employees received a small “thank you” from their former employer, which is causing more frustration.
What were these layoffs?
- In January 2024, Microsoft laid off over 1,900 employees, mainly former employees of Activision Blizzard, Xbox, and ZeniMax at that time.
- Among those laid off was the recently appointed Blizzard head Mike Ybarra.
- In May, a second wave of layoffs occurred. This time, four entire studios were shut down.
- Among the closed studios are Arkane Austin, which previously built a large franchise with Dishonored and recorded a flop with Redfall, as well as the creators of the very positively received Hi-Fi Rush.
This is the gift: Brad Hilderbrand, who worked as a Senior PR Manager at Microsoft for 5 years, shows on LinkedIn what he received from his former employer. In his post, there’s a backpack and a T-shirt with the neon green Xbox logo.
Hilderbrand’s comment on this: “I mean, I appreciate the thought, but this is also from the company that just laid me off. Strange.” The former PR manager thinks he might still be on some shipping list from which his name hasn’t been removed yet.
In the comments, other former employees report that they received the same or a similar gift. Some of them are very late Christmas gifts.
The reactions from users on LinkedIn are mixed. Some laugh about the gifts they received. Others find it highly insulting and accuse Xbox and Microsoft of a lack of sensitivity. A former EA employee suggests: Hilderbrand could wear the shirt to his next job interview to prove he was with Xbox.
“There are 2 reasons for the closures”
The layoffs have stirred up the gaming community against Xbox and Microsoft. While it is “normal” for some positions to be cut after a large acquisition like that of Activision Blizzard, the current amount and justifications are harsh.
In an email, Xbox head Matt Booty states that the focus will now be on “more impressive titles” (via IGN). How this aligns with the layoffs does not quite resonate with gamers.
Competitor Sony has lost much of its reputation in recent months, both due to the legal dispute over Call of Duty and because of the PSN requirement with the Steam hit Helldivers 2. Microsoft, and in particular Phil Spencer, have established themselves more as the “good guys” and are now jeopardizing this bonus, players believe.
Hilderbrand himself explains in another post on LinkedIn that the reasons for the layoffs do not lie within the studios themselves, but with Activision and the Game Pass:
- The Game Pass causes many games to fail to meet their sales targets.
- This isn’t too bad because the entire Xbox division was just a “rounding error” in the big Microsoft accounting.
- However, now that major studios like Bethesda and Activision are included, higher performance is expected.
- Now, major blockbusters like Call of Duty are needed in the Game Pass to improve the numbers.
For studios with small, but quite cool games like Hi-Fi Rush, there is simply no more room, says Hilderbrand.
The acquisition of Activision Blizzard by Microsoft was viewed critically, but was well received by parts of the community and by experts. The prospect that Blizzard could once again make the “good old games” brought joy. However, the mood has shifted somewhat: After the acquisition of Activision Blizzard, I was still optimistic, but Xbox is sabotaging its own portfolio.
