Microsoft Lays Off Almost 2,000 Gaming Industry Employees

• Microsoft announces layoffs, affecting nearly 2,000 employees, primarily from Xbox division.
• Internal memo reveals 8.6% reduction in gaming workforce, impacting major studios.
• Company promises full support for affected employees, including severance benefits.
• High-profile departures and game cancellations occur in the wake of layoffs.
• Industry layoffs continue following Microsoft's acquisition of Activision Blizzard.

Microsoft Announces Significant Layoffs

August 2013. The tech giant Microsoft is going through a significant reshuffling of its workforce, with nearly 2,000 employees being laid off according to a report from IGN. The layoffs primarily affect the Xbox division of the company.

Video Game Industry Layoffs

In an internal memo, Xbox head Phil Spencer stated that the company is aligning its strategy and execution plan with a sustainable cost structure to support the growth of the business. This resulted in an approximate 8.6% reduction in the gaming workforce, eliminating around 1,900 jobs out of a 22,000-person team.

The layoffs have impacted major studios such as Activision Blizzard, ZeniMax, and Xbox. Spencer expressed gratitude for the creativity, passion, and dedication shown by these employees.

Support for Affected Employees

Spencer described the decision as "painful" for Microsoft. He assured that the company will provide full support to those affected, including severance benefits in accordance with local employment laws. Despite the layoffs, Spencer maintains that Microsoft remains committed to its growth strategy.

High-Profile Departures and Cancellations

In related news, Blizzard's president Mike Ybarra and chief design officer Allen Adham have left the company. Blizzard is expected to announce a new president next week. Additionally, an in-development survival game by the studio has been canceled due to these changes.

Industry Layoffs Continuing

This comes just three months after Microsoft's $69 billion acquisition of Activision Blizzard. The new year has already seen over 4,000 job losses in the gaming industry. Despite the promising lineup of game releases, 2024 has not been a good year for game workers, as indicated by the recent staff cuts at Microsoft.

Streamers Visuals has reached out to Microsoft for a comment.

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