Microsoft’s game department recently announced the layoff of 1,900 people, triggering strong criticism from online public opinion. Players and industry insiders expressed dissatisfaction with Microsoft’s senior management.
Xbox head Phil Spencer explained the layoff decision in an internal email, saying it was to “establish a sustainable cost structure.” He thanked the laid-off employees for their contributions and promised to provide severance compensation and transition support. However, players obviously couldn’t accept this explanation, and the Internet was filled with angry accusations against Spencer.
Here’s Spencer’s memo in full
“Its been a little over three months since the Activision, Blizzard and King teams joined Microsoft. As we move forward in 2023, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.
As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players, and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.
Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.
Phil”
Gizchina News of the week
Employee Outbust on X (Twitter)
“Microsoft lays off 1,900 people in the gaming department” is currently a trending topic on X (Twitter).
A user named @RoninRakurai wrote: “Heartless to fire people right after BIG XBOX game showcase? The People that made the games you saw are being fired… Phil Spencer, Aaron, Sarah and the rest of the “clow*n” gang will get away with it…”
Another former employee with username @jessevitelli said “Companies do heinous shit like this and then in two months people will gobble up their newest content and praise Phil Spencer like he’s their best friend”
Another with username @charlieINTEL said “In October, Phil Spencer said the acquisition of Activision Blizzard would build a culture that strives to empower everyone to do their best work, four months later, Xbox and Phile Spencer are laying off 1,900 employees at Xbox, primarily at Activision Blizzard”
There are countless similar heated remarks and we obviously can not capture all of them. Many players feel chilled by Microsoft’s decision to lay off employees.
It is worth noting that this layoff occurred less than half a year after Microsoft spent $70 billion to acquire Activision Blizzard. This is also happening at a time when Microsoft hit a market value of more than $3 trillion. This has led many to question why Microsoft, which has so much money, is still laying off employees. In addition to layoffs, Blizzard Entertainment President Mike Ybarra also announced his resignation. Also, an unnamed survival game Blizzard was developing was cancelled.
Final Words
The recent layoffs by Microsoft’s game department, affecting 1,900 employees, have stirred criticism within the gaming community. Despite Xbox head Phil Spencer’s explanation of the decision to establish a sustainable cost structure, players and industry insiders remain dissatisfied. The timing of the layoffs, came shortly after Microsoft acquired Activision Blizzard for $70 billion. Microsoft’s soaring market value has also raised questions about the company’s priorities and treatment of employees. The outpouring of frustration and disappointment on social media reflects a deep concern within the gaming community about the human cost of corporate decisions in the industry.