Microsoft Slashes 10K Jobs, Including At Xbox And Halo Studios

Following rumors earlier this week from Sky News, tech giant Microsoft has announced a slew of layoffs affecting 10,000 workers, some within its game studios, blaming slowing e-commerce sales and a potential economic recession. Kotaku has confirmed that a number of developers at 343 Industries, The Coalition, and Bethesda Game Studios are being laid off.

masterfox495d ago

probably a Former Bethesda employee at this moment: Will be fun they say, everything will be ok with MS they say.

Orchard495d ago

Layoffs are pretty common during economic downturns.

But the reality is, it will be ok for 99.999% of those @ Zenimax.

MrNinosan495d ago

So you mean that only 0.1 of the 10.000 that lost their job will not be ok?

LucasRuinedChildhood495d ago (Edited 495d ago )

Orchard, don't be saying things like this.

4.5% of MS's employees are being laid off, not 0.001%.

Claiming that just 0.023 people of 2300 Bethesda employees are being laid off is ... a bit extreme, to put it lightly.

Someone who was fired could see your comment, and they're not as rare as you're implying.

VenomUK495d ago (Edited 495d ago )

Bethesda Game Studios is not protected it will also lose 4.5% of its staff. Whilst the public was told that it would have some degree of autonomy Microsoft still can make layoffs. I wonder who then has to decide the layoffs is it Microsoft's HR or does Bethesda execs have to make the choice on who to fire? That must sting pretty hard if they never wanted to get rid of anyone.

Godmars290495d ago

But this isn't an economic downturn. Its a POTENAL downturn. MS is acting on fears of ones. Will likely cause one, as they are certainly causing for former employees.

1Victor495d ago

@orchard so what you’re saying is since it’s not Sony it’s ok and they’ll be alright but if it was Sony it would be a sign that the company is closing and going bankrupt, got it.

No matter how big a company is no employees will be alright after been layoffs and his livelihood uprooted with the uncertainty of when the next pay check will come and bill knocking at the door.

The Xbox hardcore are quick to point all the billions Microsoft have and how they can afford to buy the gaming industry and have money left to buy whatever they want but in reality at the first sign of share holder’s money going one penny down they have to layoff any the thousands massive layoffs like that should be regulated by the government and corporations and big businesses should provide evidence that it would irreparably harm their company if they don’t layoff those thousands of people.

Outside_ofthe_Box495d ago

"Layoffs are pretty common during economic downturns."

So are price hikes during inflation. . . But for one you say it's common, the other you say they should eat the cost. . . I wonder why that is, surely it has nothing to do with which company is going through the circumstance, right? 😜

crazyCoconuts495d ago

Most of us probably have no idea what the impact was to any given division. From what I've seen companies try to be intelligent about how they do it and cut more from non-strategic areas. Also many do it performance based so the bottom performers are usually the first to go. But it's all speculation....
Unless....@Orchard... You are a MS executive and you happen to know the real numbers? Does your first name start with P? 😉

Lifexline495d ago

Yeah they are but it’s not surprising they did hire 40,000 in the past two years so probably just getting rid of the bloat.

But hopefully they all land somewhere. It sucks that this is standard practice for corporations to make investors happy. Hopefully something gets done to regulate that. People shouldn’t suffer for corporate greed.

shinoff2183495d ago (Edited 495d ago )

Sure thing orchy. White knighting

Sonic1881495d ago

Gamepass price increase incoming. I'm calling it out now

TheCaptainKuchiki495d ago

Let's not act like MS isn't making record profits. Let's not.

Angyobangyo494d ago

When you confuse math with meth, you land up thinking 10,000 lay offs equate to 0.1% when it's really 4.53%. Just slightly off target there.

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HardKnockKid24495d ago

I just want to say, I hope Sony fans flocking to this news are being very careful right now. Microsoft is a huge company, as is Sony. Companies protect their bottom line always, Sony may not be far behind in announcing layoffs. Keep that in mind before the dirt throwing begins

SullysCigar495d ago

Sure, they should be really careful. They should be every bit as careful as the Xbox diehards were when Sony put a price up. Recall that? And what did Microsoft do right afterwards? Yeah...

HardKnockKid24495d ago

@Sully Yeeeeaaa except that’s a terrible example as Sony opened the gen at the new price point and in Year three Xbox has yet to release a $70 base price first party title. So when you say “right after” some serious inflation has to occur to make that statement true. But I agree that fans on both sides should just stop throwing all the damn shade all the time. Just play games… there are great options for all platforms

SullysCigar495d ago

I was actually referring to the fact they've increased the prices of their consoles in some regions (with more to follow according to Phil), but you're quite right, they're putting their game prices up too - and no doubt gamepass will follow soon after.

Agreed though, we should all be sticking to the facts where we have them. Well-founded speculation also seems fair.

isarai495d ago (Edited 495d ago )

Ok well how about the example of Sony canceling their presence at a conference as to not put more people in danger when the pandemic started, and MS fanboys came in by the dozens to spout BS about how it's just a copout cause they dont have games to show. Easily the most disgusting display of not only fanboy mentality i've seen on N4G, but also the prime example of how the mods on this site are insanely biased for letting that argument continue AND marking anyone who argued otherwise as spam. But what did EVERYONE including MS do shortly after? But you guys dont want to remember that do you?

HardKnockKid24495d ago

@Sully just want to shout you out. Not everyone on this site is open to having a mature conversation including giving and receiving feedback like we just exchanged. I appreciate gamers like you. Thanks!

HardKnockKid24495d ago

@isarai….. i don’t even have the energy, sorry you feel this way. Hope things get better

shinoff2183495d ago

Any chance Sony price hike was due to not wanting to lay off employees.

Ra3030494d ago

There is a massive solar system of difference between A billion dollar company and a trillion dollar corporation. Microsoft should be firing execs sitting in the Microsoft Ivory Tower. What's odd is the Billion dollar company has a gaming division that's doing great while the trillion dollar corporation has a gaming division that's a outta control dumpster fire.

Sirk7x494d ago (Edited 494d ago )

It's more like Xbox is failing spectacularly right now. MS has bought all these studios, and they've released nothing worthwhile. In the last 5 years, I can't think of any decent games they've managed to put out aside from Horizon 5, Ori and Sea of Thieves. This is abysmal management all around. Halo Infinite could have been great, but after years of development, 343 only had half a game, and now they're getting busted down to a support team for the franchise. MS is spending BILLIONS, and they have done absolutely nothing to show for it lol. People don't need to be getting laid off, they need to axe and completely restructure their management from top to bottom. I really want the Xbox to succeed; I've owned every one, but I'm done with MS until they fix their shit. This is coming from somehow who bought hundreds of digital games from them last gen, who ended up canceling his Ultimate subscription, selling his Series X and just getting a PS5 instead.

I'll be concerned when Nintendo starts announcing layoffs lol.

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SullysCigar495d ago

With this news, I'd imagine the Activision employees have just collectively added a fair old whack to the methane in our atmosphere.

neutralgamer1992495d ago (Edited 495d ago )

Maybe stop spending 69 billion on acquisition and keep these people and provide the resources and support

2019: ~144,000 Microsoft employees
2020: ~163,000 Microsoft employees
2021: ~181,000 Microsoft employees
2022: ~221,000 Microsoft employees

darthv72495d ago (Edited 495d ago )

I think those were the years they ramped up employees due to the increase in people being home during covid. Now that people are returning to some semblance of normalcy, things have declined in terms of needing that many employees to provide the services that had spiked previously. I get it... anyone who works for a big company can be laid off at any moment due to changing economic conditions.

The really odd take is how this is happening at the same time they are about to inherit thousands of employees due to a big acquisition they have been working on. So it could also stem from that and those they are okay with losing are similar positions that will automatically be filled with incoming staff. They dont need two of the same person (as an example) so they keep the incoming as part of their deal and have to sacrifice the outgoing who may have been there already. Longevity is not a guarantee of employment, especially if the terms of the deal require them to provide jobs for incoming staff.

Personally speaking, i have been in a company like that. They made room for me when the company I worked for was purchased. Then after a few years found they no longer needed me so i was let go. Something like that can (and will) happen here. Adding 77k employees in 4 years only to turn around and let go of 10k... I guess it could have been worse.

Lightning77495d ago

I feel bad for Coalition and Bethesda but not so much for 343 as much. I haven't cared for Halo and 343 for awhile. My least favorite Studio and game tbh. Hearts go out to 343 employees of course but Halo needs a long hiatus. Maybe the Halo BR will be good maybe.