Microsoft, a tech giant, announced a large round of layoffs across all of its divisions on January 18, 2023, affecting some 10,000 people, including game developers.
This information comes from a Bloomberg story that explains that Microsoft is trying to cut costs amid a general economic slowdown by laying off employees. These layoffs coincide with Microsoft’s current legal battle with the FTC over its $69 billion takeover of Activision Blizzard, the company behind Call of Duty.
Microsoft Lays off 10,000 people
According to a Bloomberg report, Bethesda and Halo Infinite developer 343 Industries will have to reduce their staff. Bethesda is presently working on the highly anticipated space RPG Starfield, which is scheduled to release in 2023.
In an email to staff members, 343 Industries’ studio chief Pierre Hintze said the firm had “made the difficult decision to restructure elements of our team, which means some roles are being eliminated.”
Bloomberg claims that while Microsoft intends to expand its workforce in “strategic, competitive areas” like AI, other tech-related divisions like HoloLens and other engineering divisions have been affected by these layoffs.
Microsoft must provide detailed departmental breakdowns or figures for this big wave of layoffs. Amazon, a different internet giant, is in the midst of its round of layoffs as the business seeks to cut its workforce by 18,000 people.
Other Tech Giants In Trouble
The layoffs are attributed to the present economic slump, which has adversely impacted several businesses. In addition, regulators in the US, UK, and EU view Microsoft’s plan to pay $69 billion to acquire Activision Blizzard in 2023 with great mistrust. However, the company still plans to invest in “emerging industries” like AI development.
In a recent email to staff members, Ubisoft CEO Yves Guillemot discussed similar issues, which prompted Ubisoft’s Paris department to declare a warning strike.
According to Jacob Wolf, Riot Games also began a round of layoffs on January 19, 2023, though the extent is unknown. It primarily impacts positions outside game development, including human resources, recruitment, support, and esports.
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FAQs
When did Microsoft announce the layoff of 10,000 people?
Microsoft, a tech giant, announced a large round of layoffs across all of its divisions on January 18, 2023, affecting some 10,000 people, including game developers.
