A Microsoft memo leaked to the press today heralds another round of layoffs at the company’s games division: Microsoft Xbox boss Phil Spencer informed staff that he’s cutting another 650 workers. IGN calculates that Microsoft has axed 2550 workers just from its gaming segment alone in the last year since it completed its buyout of Activision-Blizzard; that figure presumably counts the voluntary severance deals the company was pushing last spring and the layoffs in March, May, and again in July.
Spencer seems to suggest that the acquisition and ensuing reorganization continue to drive these fresh layoffs.
“For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work,” he told workers in the memo. “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long term success.” He also says no games or studios are being canned (which was not true with the last big round of layoffs).
“With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.”
Spencer made headlines this past summer when he attempted to justify the layoffs and his role in them. “I have to run a sustainable business inside the company and grow, and that means sometimes I have to make hard decisions that frankly are not decisions I love, but decisions that somebody needs to go make,” he said.
After 9 years working on World of Warcraft I am terminated. I am doing as ok as i can and looking towards the future for other positions. I’m happy I got to see everyone play my content and work with others since Legion. I’ve accomplished all my goals so, time to make more.
— Zoomkins (@ZoomkinsBL) September 12, 2024
“Microsoft’s decision to lay off 650 video game workers is an extremely disappointing move from one of the world’s largest and most profitable corporations. This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July. While none of those who are losing their jobs are represented by CWA, we understand how devastating layoffs are to the workers and their families.
“Every worker deserves a voice on the job and a say over the impact of job cuts,” said Samuel Cooper, Senior Producer at World of Warcraft and member of WoWGG-CWA. “While we would hope that a company like Microsoft with $88 billion in profits last year could achieve ‘long term success’ without destroying the livelihoods of 650 of our colleagues, heartless layoffs like these have become all too common. We stand in solidarity with everyone who lost their job today and encourage all video game workers to join with us and form unions so we can protect each other.”
While union representation does not always protect against layoffs, collective bargaining does give workers a voice in the policies that affect them, including how layoffs are handled. Former Sony Computer Entertainment Europe President Chris Deering’s callous suggestion earlier this week that laid off game workers should ‘go to the beach for a year’ shows how insulated many executives are from the impact of their decisions on their workers. Amid the constant threat of layoffs in the tech and video game industries, organizing momentum continues to surge. Over 6,000 tech and video game workers have organized to join CWA, and we remain committed to supporting workers at Microsoft and throughout the tech and video game industry who seek to form a union and improve their workplace.”
