The word was out this morning of 1,900 people being laid off by Microsoft, primarily focused on staff at Activision Blizzard.
The word from Microsoft’s XBox chief Phil Spencer today:
As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible.
While that may be the wish, the word online is that it is not being handled well, that they announced the number of people to be laid off before getting around to informing individuals who would be affected.
Some bits of news have come out, such as the cancellation of Blizzard’s unannounced survival game that they mentioned back in early 2022. Also, one time interim co-president who was paid more than his female partner and didn’t squeak about it until after the fact Mike Ybarra has been let go… I mean, he said he as leaving, but I am sure he was pushed.
I wouldn’t cry for him though, at his level he will get a huge exit package. I mean, he won’t get the $400 million that Bobby Kotick got in severance, but Mike won’t be missing any meals.
So not a great day and my heart goes out to those who have been laid off. I’ve been there a few times, even working in an allegedly more stable area of the tech industry.
That there were going to be layoffs after the acquisition was inevitable. There are always some redundancies to punish for the sake of efficiency. I have never been part of an acquisition… and by my count I’ve been through more than a dozen… that didn’t lay off at least some people from HR, accounting, marketing, and other support groups.
And the fact that Microsoft spent last year laying off people from most of its business groups… Linked In and Microsoft’s other Silicon Valley operations saw a big trim and I know some people who were let go… meant that Activision Blizzard was going to get some additional chopping as well. That was obvious enough that I predicted it back on January 1st.
But then there is the whole state of the video game industry which is seeing a long, ongoing round of layoffs that saw more than 10,500 game dev staff laid off in 2023 and, out the gate an in just the first month of 2024, the number has been increased by nearly 6,000 additional cuts. (Oh crap, there is another layoff.)
And those cuts are just the big companies that need to announce sizable reductions for legal reasons. That does not really pick up anything small or privately held.
Those big companies always seem to be places where there were also record profits and huge executive compensation packages. Want to know why I don’t care for Tim Sweeney? Because he is a billionaire who tries to position himself as being good for the industry, but who laid off 16% of Epic Games last year while still trying holding onto the Epic Game Store, which he dumps money into out of sheer ego because he can’t stand that Steam makes money off of his products.
100% greed and ego driven. He has billions, makes wasteful decisions, and the employees suffer so he doesn’t lose any compensation or shareholder value. There are a lot of reasons not to use the Epic Game Store, but this is pretty high on my list.
And Tim is just one example. Other companies like Riot and Unity continue to overpay execs while laying off the people who make the games. (Though at least Unity managed to jettison that pile of garbage posing as a human John Riccitiello eventually… but only after he had completely fucked things up.)
Anyway, I am in danger of getting even more ranty and I am writing this while I eat lunch.
The news is that layoffs are here and they won’t be stopping anytime soon in the video game industry for a host of reasons, but greed and a lack of any foresight or planning are at the top of the list. But I am sure this won’t come back to haunt anybody going forward.
Today Microsoft XBox division laid off 1,900 people, mostly at Activision Blizzard and I won’t be surprised if this is only the first pass.
Related:
- IGN – Microsoft Lays Off 1,900 Staff From Its Video Game Workforce
- Massively OP – Microsoft lays off ~1900 workers
- In An Age – Blizzard Decimation
- Game Developer – Microsoft follows Activision Blizzard merger with 1,900 layoffs
- Game Developer – Blizzard cancels Odyssey MMO amid Microsoft layoffs
- Game Developer – Blizzard’s Odyssey MMO killed due to ongoing engine woes
- Game Developer – Mike Ybarra exits Blizzard Entertainment after Microsoft layoffs
- Bloomberg – Microsoft Cancels New Blizzard Video Game After Six Years of Development
- Matthew Ball – The Tremendous Yet Troubled State of Gaming in 2024
- Broken Toys – Ludum mortuus est