Microsoft has announced job cuts at Xbox Division

Draugoth

Draugoth

Gold Member
Microsoft is laying off 9,000 staffers today, impacting 4% of its global workforce.

Microsoft's Barcelona-based King division, which makes Candy Crush, is cutting 10% of its staff, or about 200 jobs

www.bloomberg.com

Microsoft Begins Deep Job Cuts Across Xbox Division

European subsidiaries such as King were informed about the job cuts on Wednesday
www.bloomberg.com www.bloomberg.com



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Microsoft Corp.'s gaming division began informing employees of job cuts on Wednesday morning, initiating the process of widespread layoffs that staff have been expecting for the last week.

Microsoft's Barcelona-based King division, which makes Candy Crush, is cutting 10% of its staff, or about 200 jobs, according to people familiar with the plans. Other European offices, such as ZeniMax, also began informing employees that job cuts were happening, said the people, who asked not to be identified because they were not authorized to speak to press.

US units were expected to be told later Wednesday how many jobs would be cut at each office. Microsoft's gaming division had about 20,000 employees as of January 2024.

Employees had been bracing for the job cuts since May, when Microsoft began conducting companywide layoffs and speculation mounted that the gaming division might be impacted. Many staff learned last week through a Bloomberg report that the cuts were imminent.

This is the fourth mass layoff at Xbox in the last 18 months. The gaming division has been under pressure from Microsoft executives to boost profit margins since purchasing Activision Blizzard for $69 billion in a deal that closed in October 2023.
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Here's the full text of the news report linked in the OP:

Microsoft Corp.'s gaming division began informing employees of job cuts on Wednesday morning, initiating the process of widespread layoffs that staff have been expecting for the last week.

Microsoft's Barcelona-based King division, which makes Candy Crush, is cutting 10% of its staff, or about 200 jobs, according to people familiar with the plans. Other European offices, such as ZeniMax, also began informing employees that job cuts were happening, said the people, who asked not to be identified because they were not authorized to speak to press.

US units were expected to be told later Wednesday how many jobs would be cut at each office. Microsoft's gaming division had about 20,000 employees as of January 2024.

Employees had been bracing for the job cuts since May, when Microsoft began conducting companywide layoffs and speculation mounted that the gaming division might be impacted. Many staff learned last week through a Bloomberg report that the cuts were imminent.

This is the fourth mass layoff at Xbox in the last 18 months. The gaming division has been under pressure from Microsoft executives to boost profit margins since purchasing Activision Blizzard for $69 billion in a deal that closed in October 2023.
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Layoffs are not to be celebrated, sucks for the involved and all that.

But King had 2000 employees? Doing... what?
 
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Did not expect King to be one of them.

This is going to be a long day, expect many more once the American west coast offices open.
 
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In my opinion, anytime mass layoffs occur, it should be viewed as a complete failure in the leadership team, and they should face the consequences. Instead, they are usually rewarded with bigger bonuses.
 
Some words from our Uncle Phil

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.


 
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20,000 people and cutting 10% would be a drop in the bucket for their bottom line.


If you are here it is always best tot talk bout who gets cut instead of being cut. But I assume some execs get trimmed as well due to their failure to deliver sales.
 
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Ass of Can Whooping said:
Some words from our Uncle Phil

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
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You have to be a massive asshole to even mention how amazing you are doing in an email where you're announcing layoffs. And it's not even actual useful metrics either, just bullshit about player hours etc.
 
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marjo said:
In my opinion, anytime mass layoffs occur, it should be viewed as a complete failure in the leadership team, and they should face the consequences. Instead, they are usually rewarded with bigger bonuses.
Click to expand...
CEOs should get massive bonuses cuts for lack of performance for letting so many jobs be lost in a fiscal year. It's crazy to think these guys get sums over U$20+ million in bonuses for cutting jobs to say the company had growth said year.
 
Mobile stuff is extremely marketing/market-research led because discoverability and "stickyness" are key.

Most people would be shocked the amount of time and work are invested in crafting mobile product for maximum profitability. Endless iteration and group testing... Its super corporate and it sucks.

But when there's so much money to be bilked from the massive casual audience, it is what it is.
 
Sad to see but not exactly surprised by it in the slightest.

That being said though. Some teams are just way too big and need some cuts.
 
VolticArchangel said:
Candy Crush Saga alone has 1 billion + unique users on Android, and we haven't even counted Apple yet.

It's a massive flagship mobile game series before the buyout, and it still is.
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Sure, but it's not like they're releasing a new version all the time/that there's a new OS version that has to be accommodated for (those are annual refreshes). Just seems excessive to me. Oh well, a bit less excessive now.
 
VolticArchangel said:
Candy Crush Saga alone has 1 billion + unique users on Android, and we haven't even counted Apple yet.

It's a massive flagship mobile game series before the buyout, and it still is.
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Yeah, but the success of the game isn't the point. The question is why does a mobile developer have 2,000 employees? If you look at the list of games made by King, most of them are discontinued. They have 11 active games, most of which are older titles.

I'm not saying I know better than a successful company like that - I don't. That number is just 4-5 times bigger than I would have expected. It makes me really curious what their org chart looks like.
 
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Astray said:
You have to be a massive asshole to even mention how amazing you are doing in an email where you're announcing layoffs. And it's not even actual useful metrics either, just bullshit about player hours etc.
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Or just poor reading comprehension. Nothing in that message screams "massive asshole."

He's saying that their current metrics are due to previously difficult decisions (like going multiplatform), so they have to make those kinds of calls to position their gaming division correctly to have any continued success. There is a delay on what they spend now and what their outcome will look like in the future. Everyone on here knows that is 100% true. Their hardware is not selling and they're transitioning to a multiplatform publisher model so it would be pretty ridiculous to continue to fund a 1st party hardware and sales team. Everyone asked for this for years and it means they definitely can't spend the same amount on staff as a 1st party platform holder.

It's okay to criticize the layoffs and say your piece without lying. Also, mentioning that you still have positive elements of the business is not evil. That's literally how you employ the people that are still there.
 
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Ass of Can Whooping said:
Some words from our Uncle Phil

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Click to expand...

Just so gross…motherfuck Phil Spencer now and for eternity.
 
When Microsoft is worth almost 4 trillion dollars, and makes billions and billions every quarter, firing workers like this seems like a sociopathic mentality.
 
. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.
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adamsapple adamsapple worst nightmare; a thread of each company having layoffs.

. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Click to expand...
our ass is bleeding red and if we don't do something, we are cooked

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental — it is the result of years of dedicated effort from our teams.
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their momentum is due to my own incompetence, but I'm the boss, bitch
- Phil (the goat and savior of gaming)
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In the tech industry right now there is a lot of reduction in redundancy. Managers are bragging about doing the same work with much less people. The worse part? This mostly isn't even because of AI! This is all improved efficiency(I'm sure mixed in with some business level reprioritization and restructuring).

AI hitting full force will be worse.
 
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Punished Miku said:
Or just poor reading comprehension. Nothing in that message screams "massive asshole."
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Of course, to you it doesn't.
Punished Miku said:
He's saying that their current metrics are due to previously difficult decisions (like going multiplatform),
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LMAO. Why would that be a "difficult decision". I'm sure it was a difficult thing to see for the hardcore fanboys, but here he is talking to his employees. Why would going multiplatform be a "difficult decision" for these employees? LOL.

He is of course talking about previous layoffs.
 
It's a truly tactless and unsympathetic statement...
I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.
Click to expand...

Translation: "We're better than ever... but this is the best time to cut back".

"Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review".
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Translation: "We've fired you, but we have job openings at other studios where we'll pay you less."
 
Roman Empire said:
CEOs should get massive bonuses cuts for lack of performance for letting so many jobs be lost in a fiscal year. It's crazy to think these guys get sums over U$20+ million in bonuses for cutting jobs to say the company had growth said year.
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The business is doing better than ever, did you not read Phil's email? Performance is not the problem, it's an unfortunate restructuring within the division.
 
Punished Miku said:
Or just poor reading comprehension. Nothing in that message screams "massive asshole."

He's saying that their current metrics are due to previously difficult decisions (like going multiplatform), so they have to make those kinds of calls to position their gaming division correctly to have any continued success. There is a delay on what they spend now and what their outcome will look like in the future. Everyone on here knows that is 100% true. Their hardware is not selling and they're transitioning to a multiplatform publisher model so it would be pretty ridiculous to continue to fund a 1st party hardware and sales team. Everyone asked for this for years and it means they definitely can't spend the same amount on staff as a 1st party platform holder.

It's okay to criticize the layoffs and say your piece without lying. Also, mentioning that you still have positive elements of the business is not evil. That's literally how you employ the people that are still there.
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Everyone asked for this? No, nobody "asked" MS to buy these publishers. They did that on their own, and I wouldn't be surprised if you cheered them on. A whole bunch of people getting fired and studios shut down was always the most likely end result. Trying to shift the blame for these layoffs on to the "haters" for "asking for it" is pretty pathetic. This is all on MS and their army of online sycophants. Hope you are happy.
 
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Darsxx82 said:
It's a truly tactless and unsympathetic statement...


Translation: "We're better than ever... but this is the best time to cut back".


Translation: "We've fired you, but we have job openings at other studios where we'll pay you less."
Click to expand...

"Thank you for helping us make money, now get the fuck out of my building."
 
Ass of Can Whooping said:
Some words from our Uncle Phil

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Click to expand...

Hardware has never looked stronger? Huh?

Also, "we will end or decrease work in certain areas of the business" does that unfortunately mean studio closures?

Actually seems like a big layoff. Wonder how long it will take to get the complete picture
 
Ass of Can Whooping said:
Some words from our Uncle Phil

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Click to expand...

Sounds like your typical asshole exec redundancy email.

And never believe a word they will help you with whatever after losing your job, they want you gone as quick and legally as possible.
 
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Punished Miku said:
Or just poor reading comprehension. Nothing in that message screams "massive asshole."

He's saying that their current metrics are due to previously difficult decisions (like going multiplatform), so they have to make those kinds of calls to position their gaming division correctly to have any continued success. There is a delay on what they spend now and what their outcome will look like in the future. Everyone on here knows that is 100% true. Their hardware is not selling and they're transitioning to a multiplatform publisher model so it would be pretty ridiculous to continue to fund a 1st party hardware and sales team. Everyone asked for this for years and it means they definitely can't spend the same amount on staff as a 1st party platform holder.

It's okay to criticize the layoffs and say your piece without lying. Also, mentioning that you still have positive elements of the business is not evil. That's literally how you employ the people that are still there.
Click to expand...
Insane to me that he's even tooting his own horn on this occasion.

You send this waffle to cronies like Parris or Destin so they can puff your plans up on social media, you don't send it to employees on the eve of your 4th layoff in 18 months!

All these layoffs happened because mr. gamer shirt wanted a career moment. Not anything else.

Ebrietas said:
Nobody "asked" MS to buy these publishers. They did that on their own and I wouldn't be surprised if you cheered them on. This was always the most likely end result. Trying to shift the blame for these layoffs on to the "haters" is pretty pathetic. This is all on MS and their army of online sycophants. Hope you are happy.
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He certainly was a brave leader when he enacted the 4th layoff in 18 months, I just needed to walk a mile in his shoes.

How will he ever cope with his multimillion salary for failing upwards?
 
winjer said:
When Microsoft is worth almost 4 trillion dollars, and makes billions and billions every quarter, firing workers like this seems like a sociopathic mentality.
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It's another reminder that corporations do not think, feel, or act like human beings. They are machines of capital generation. Their only function is to generate larger and larger amounts of capital. That's it. Every single decision they make is based on that question, and the better the people making the decisions are able to set aside their personal feelings (if/when they have them) and execute on the goal of increasing capital generation, the more valued they are to the machine.

It's also a two-way street. If a person goes to work for a big company, they're putting themselves in a position to be culled by the machine at any time, for reasons that have nothing to do with human relationships. I'm not victim blaming here, and I'm not saying any of this is an excuse for the pain people feel when they get laid off. Just that being angry and resentful of a machine for fulfilling it's purpose doesn't achieve anything - even as an outlet for anger, resentment, stress, grief, etc. Hating on Microsoft won't make any of this feel any better for anyone.
 
rm082e said:
It's another reminder that corporations do not think, feel, or act like human beings. They are machines of capital generation. Their only function is to generate larger and larger amounts of capital. That's it. Every single decision they make is based on that question, and the better the people making the decisions are able to set aside their personal feelings (if/when they have them) and execute on the goal of increasing capital generation, the more valued they are to the machine.

It's also a two-way street. If a person goes to work for a big company, they're putting themselves in a position to be culled by the machine at any time, for reasons that have nothing to do with human relationships. I'm not victim blaming here, and I'm not saying any of this is an excuse for the pain people feel when they get laid off. Just that being angry and resentful of a machine for fulfilling it's purpose doesn't achieve anything - even as an outlet for anger, resentment, stress, grief, etc. Hating on Microsoft won't make any of this feel any better for anyone.
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The analogy to a machine is quite apt.
But these corporations are run by people, who look at other people as mere tools. This is a sick mentality.
 
winjer said:
When Microsoft is worth almost 4 trillion dollars, and makes billions and billions every quarter, firing workers like this seems like a sociopathic mentality.
Click to expand...

Especially when a Phil's "Sorry we have to let you go" mail emphasizes that Microsoft's gaming division is doing great.
 
Ass of Can Whooping said:
Some words from our Uncle Phil

Today we are sharing decisions that will impact colleagues across our organization. To position Gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness. Out of respect for those impacted today, the specifics of today's notifications and any organizational shifts will be shared by your team leaders in the coming days.

I recognize that these changes come at a time when we have more players, games, and gaming hours than ever before. Our platform, hardware, and game roadmap have never looked stronger. The success we're seeing currently is based on tough decisions we've made previously. We must make choices now for continued success in future years and a key part of that strategy is the discipline to prioritize the strongest opportunities. We will protect what is thriving and concentrate effort on areas with the greatest potential, while delivering on the expectations the company has for our business. This focused approach means we can deliver exceptional games and experiences for players for generations to come.

Prioritizing our opportunities is essential, but that does not lessen the significance of this moment. Simply put, we would not be where we are today without the time, energy, and creativity of those whose roles are impacted. These decisions are not a reflection of the talent, creativity, and dedication of the people involved. Our momentum is not accidental—it is the result of years of dedicated effort from our teams.

HR is working directly with impacted employees to provide severance plan benefits (aligned with local laws), including pay, healthcare coverage, and job placement resources to support their transition. Employees whose roles were eliminated are encouraged to explore open positions across Microsoft Gaming, where their applications will be given priority review.
Click to expand...

Fight Fah GIF by Foil Arms and Hog
 
Hookshot said:
Bloomberg got tens of thousands of people worried for a week just for 200 people to be let go from King?
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There's more news about job losses forthcoming.

Other European offices, such as ZeniMax, also began informing employees that job cuts were happening, said the people, who asked not to be identified because they were not authorized to speak to press.

US units were expected to be told later Wednesday how many jobs would be cut at each office. Microsoft's gaming division had about 20,000 employees as of January 2024.
Click to expand...
 
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