Microsoft is drastically laying off its workforce. The company planned to let go around five per cent of its workforce globally in advance of potentially significant changes across its many divisions. These layoffs appear to be far broader than the 2022 layoff, which mostly affected customer service, partners, and consulting solutions. There have reportedly been layoffs at Bethesda Studios, 343 Industries, and the Xbox division.
Microsoft is cutting jobs primarily in its gaming divisions. According to reports, 343 Industries, the company behind Halo Infinite, has been severely impacted by these layoffs. This follows a prolonged hiring freeze and contractual departures from the studio. This is not great news, but it is also not unexpected. Halo Infinite was a challenge for 343 Industries to finish, and since its release with just half the content, the game’s user base has dropped.
Particular cuts are being made by 343 Industries to the Halo Infinite campaign crew. Microsoft is restructuring the studio and various elements of the team, according to studio chief Pierre Hintze in an email to employees. Hence, some roles are being eliminated.
Bethesda is yet another company experiencing layoffs. Since Microsoft bought the business in the year 2020, not much has happened. Currently, the business is concentrating on Starfield, which was initially scheduled to launch in November last year and was postponed to 2023. According to reports, Starfield won’t launch by its original target date of the first half of 2023.
Exactly one year after Microsoft announced its plans to buy Activision Blizzard, the business announced a huge layoff. The $69 billion transaction has also been hampered by legal disputes and delays related to how it would affect the gambling industry. Microsoft expects the agreement to be signed by the end of 2023. Recent concerns from the EU Commission and a lawsuit brought by the FTC, however, may cause more delay.
With these layoffs, the corporation hopes to save $1.2 billion in costs.
