
Bloomberg has reported that more Xbox employees have lost their jobs this week as part of Microsoft's ongoing plan to implement 10,000 layoffs throughout the company, while the Surface and HoloLens divisions have also been affected.
According to the outlet, the Xbox reductions this time have affected the marketing team and Gaming Ecosystem Group, although specifics have yet to be revealed. Head of Xbox Phil Spencer also reportedly emailed employees on Thursday to inform them about what was happening.
Here's a bit of what he apparently had to say:
“I encourage everyone to take the time and space necessary to process these changes and support your colleagues."
Back in January, when these plans for 10,000 layoffs were first announced, it emerged that the likes of Halo studio 343 Industries had been impacted, with Phil Spencer admitting it was a "challenging moment in our business".
There's every chance we may hear of more Xbox layoffs as the next few months progress, but here's hoping there won't be too many job reductions ahead for the brand.
What are your thoughts about this? Let us know down in the comments section below.
[source bloomberg.com]
Comments 32
Microsoft's net worth is $1.7 trillion. They just spent $69 billion on the Activision/Blizzard deal. Yet they lay-off people who are just trying to scrape by. This is why I'll never understand why people (especially on this site) will spend so much effort shamelessly defending a corporation who doesn't care about you.
Start with the Xbox executives making the bad decisions.
what Controller is that in the pic?
Wonder what this “ecosystem” group might be in charge of…. Could mean so many things but I’m guessing they are in charge of stuff like PC and mobile Xbox apps…
As for marketing, they might be better off if they have most of the marketing allocated to the Zenimax marketing team (whomever worked on Developer Direct is good too.)
@stvevan I believe that's the Lunar Shift controller.
@Sifi If they're going to bring them back when the deal goes through, then why not keep them? It's not like they can't afford to keep them. They should stop messing with their employees' lives. Besides, in the time they are laid off, I'd hope and think that many of them will find jobs elsewhere and then not want to go back to the place that treats them like they are nothing more than a number. This isn't a problem for only Microsoft. Most large corporations are the same. It's corporate greed.
@bpomber
I do agree that all layoffs are bad and affect real people that are essentially innocent. But as with every company over time, they have to change and manage the skillsets and products that they have.
The Activision-Blizzard deal is the acquisition of a product line and skillsets. The layoffs are a re-jigging of the existing product lines and skillsets.
In an ideal world companies would hire people for life and between the corporation and the people they would constantly evolve and change to meet product line and skillset needs. But the world is not ideal. I work with many people that do not evolve and improve their skillsets, and I work with many companies that don't give their employees the opportunity to evolve and adjust over time. It is sad, but it is a reality of the world. I am not justifying or saying it is right. But, it is the way the world currently is.
@bpomber cheers
@NeoRatt I understand where you're coming from. But, upon an organizational shift, I think a company that truly cared about their employees would find positions in the company that better suit the employees' skill sets and work ethic, rather than lay them off. For some people, that may end up mean moving to a position that is lower on the pay scale, but it's a lot better than being laid off.
Training and development for employees can also go a long way in helping them improve within the company.
There are many ways that a business, especially a trillion dollar business, can get maximize the use of their current employees' skill sets. Laying off employees is just the easy and cheap way out.
@bpomber I will say that Microsoft treats its employees VERY well. There are plenty of opportunities to improve one's skillset. Microsoft isn't a "people farm" at all.
Most the areas that are getting cut are areas that aren't really producing revenue anymore due to market shifts.
Sometimes those losing jobs are not technical skillsets. It may be that the other areas where that person's skillset WOULD be useful is already filled. And they just don't have technical skills to fill a different position.
Sometimes those people losing jobs are under-performing.
Sometimes it's people who never brushed up on other skills and just can't fill a position based on "potential".
Microsoft is also doing other things to cut costs rather than simply cutting people. It's sad to see anyone lose a job, but sometimes these things happen.
Plus, Microsoft is providing a very generous severance package for cut employees.
Look at it this way: it's like shutting down servers for underperforming games. It sucks for the people playing, but it's more of a drain on resources than a gain.
You can scream "corporate greed" all you want, but it makes zero sense to maintain with negative return on investment. Would you keep a car if it costs more to maintain than to get a new one?
@bpomber
it’s a business. If they just pay for dead weight they’ll eventually go out of business. Plus they have millions of employees to take care of.
Halo was a let down, time to trim. If you think Sony doesn’t or hasn’t ever, you’re crazy. Zipper, incognito, and many others. Plus that doesn’t include the film companies Sony has closed
@GamingFan4Lyf You're stating fact man don't do it. People are too sentimental these days.
Yet they will happily spend nearly 70B on Activision.
@GamingFan4Lyf That's good to hear! I hope that's all true. Doesn't change the fact that they will still cut you out if they want to, and these lay-offs are proof of that.
My overall point is that I just don't understand why people will get so attached to and defend multi-billion (or in this case, trillion) dollar companies. These companies would not do the same for you.
@Deshalu Why does Sony always have to come up in the comment section of Pure Xbox? But since you brought it up, yes I do think the same way about Sony. I'm not going to defend them.
@bpomber So why did you even make a comment, when you should know it’s just business and all businesses do this, especially successful businesses?
I brought up Sony for comparison since they’re in the same field. It would be weird for me to compare RoomsToGo to Microsoft
It's unfortunate that people are losing their livelihood, but it would be irresponsible of MS not to trim the fat. It's deplorable, however, to use this sad news for console warring.
@Deshalu I made a comment specifically about Microsoft because this is Pure Xbox and that's who the article is about. I know many corporations do this. I don't understand why people get attached to and defend these corporations. That's my point. I don't see the use in defending Microsoft or Sony or any of these huge corporations.
@bpomber but if you said you know why they do it, then why attack these companies when you know that it’s a business thing?
In order for a business to stay around they have to trim fat. buying or investing other companies that is already proven successful will help you even more with your success.
they got a great severance package the ex-employees.
@bpomber if you get let go by a successful business, there’s a reason
I’m looking at 343 industries and Halo
Marketing
@Deshalu I stated some facts about Microsoft and then said:
"This is why I'll never understand why people (especially on this site) will spend so much effort shamelessly defending a corporation who doesn't care about you."
That's my point here. That people shamelessly defend huge corporations.
I think you're missing that point and getting too tied up in the reasoning behind the lay-offs, and in turn are defending the corporation. Which is adding to my point.
@bpomber you don’t have a point and I’m not defending. I’m stating facts on an Xbox website.
You sound like a disgruntled employee, about your own company you work for, and feel like the world and that company owes you. Save your money and be better.
I’m a manager, the world is rough right now, has long as you are good at your job you’re irreplaceable and trust me companies know that.
If you get fired or let go in a successful company, it’s you and you need to look in the mirror. You not as good as you think you are, it could be anything from your work ethic, attendance, and or your attitude
@Sam_TSM I don’t think anybody here is defending. In the long run GamePass will make Microsoft a ton of money, but saves to consumers money (I mean the pure gamers on their end). It’s a win-win for both.
Sony charges you 70 bucks for a game then charges you another 10 just to be able to play online. Microsoft, you can do the 60 bucks and then get charged 10 or you can do the $15 for game pass ultimate with day one exclusives
Sony releases two exclusives from their first party on average a year and they roughly sell about 10 million copies each. Last report of subscribers for game pass ultimate was 25 million. Then because of a game you normally wouldn’t buy you’re also buying add-ons because you’re not spending as much on games which Microsoft gets a bigger profit on add-ons so does Sony. Do the math. Microsoft is raking in the money.
Problem they’re losing the bigger AAA from other companies that don’t want to use GamePass, which in turn is hurting them because they don’t have the IP‘s, their an American company with not a lot of console sales so most developers don’t even want to build for them, and they don’t have 30+ old franchises that are greatly loved, like Mario, twisted metal, so on and so on.
But it’s very smart and good business. If you get a job there be good because they’re going to be around for a long time.
Plus, the caveat is games like Minecraft and call of duty release on all platforms. Then you have your other exclusives that push you towards your Console. Which Microsoft still doesn’t technically have the IP‘s, that’s one of the reasons they’re last in consoles.
i’m looking at this from a consumers point. wouldn’t you love to have PlayStation plus day one Sony exclusives?
@Deshalu I see you have nothing left to say so you have just resorted to baseless assumptions about me. You know it's okay to end a conversation in disagreement without stooping to that low.
@bpomber I see you just ignored everything I said.
You’re hating on a company that you have no reason to hate on.
You were trying to argue about a company laying off employees that everyone agrees hasn’t been good.
I don't think anybody thinks that a corporation is one's friend however we all know that for businesses to survive they have to trim fat, that allows them to produce the products that we buy and to pay the hard working employees. Thing is we have got to get out of the mentality that just because a corporation does something that they are evil or it is pure greed. Corporations are made up of people, individuals are going to sometimes be inept or greedy, but this whole company=bad, employee=victim is a disproportioned response. Most of us have jobs and most of us work for or have worked for a company, we have all seen people either not do their best or just flat out fail performance wise. Layoffs are unfortunate but it is not the end of the world for those people (usually). The days of working for one company your entire life have been gone for a while. The employees will eventually land on their feet or find new jobs, the market will continue on. It's not really good or evil so much as the cycle. acknowledging that or not thinking that everyone is in an ivory tower looking down on the peasants isn't supporting or shilling to a company, it is simply acknowledging the economic systems that drive our society. (not to say there aren't jerk rich people, same as there are entitled/jerk poor people...because they are people.)
@Deshalu This conversation just keeps getting further and further away from the point of my original comment which you clearly took out of context.
I said I don't understand why people shamelessly defend huge corporations. It's that simple. You somehow took that and made assumptions that I'm a disgruntled employee and that I need to save money and so on.
Let's just end this conversation now before it gets even worse. It's Friday, time to start the weekend and enjoy some down time and gaming!
@bpomber dude you had a whole other paragraph for the start of your comment
You said
Microsoft's net worth is $1.7 trillion. They just spent $69 billion on the Activision/Blizzard deal. Yet they lay-off people who are just trying to scrape by.
Then you said
This is why I'll never understand why people (especially on this site) will spend so much effort shamelessly defending a corporation who doesn't care about you.
The first part, there’s a reason they got laid off they weren’t doing their job….. halo was not well received and marketing hasn’t been good. If you were scraping by, you think you’d try harder to keep your job.
Have fun gaming that’s what I’m doing
@Deshalu “…there’s a reason they got laid off they weren’t doing their job…”
Something tells me you don’t work in corporate America, and especially not in tech. Pretty gross take to say everyone laid off got what they deserved. Lots of people get laid off for a multitude of reasons, even hard working and productive ones. Doubly so in tech.
@EvenStephen7 true. Most of the ones were the good workers get laid off the company is usually going under. Do you really think Halo infinite was successful or well received? How do you feel marketings been for Microsoft?
It does suck. I can also tell you haven’t read all my comments.
So unfortunate that people have to lose their jobs at anytime but especially at the moment with the cost of living etc.
However companies the size of Microsoft and a lot smaller companies, employee and employee then realise they have over bloated themselves with staff. Then they start to stream line.
Some companies I have seen it where it seems to about a 10 to 15 year cycle of employee then redundancy.
As for the gaming division, marketing, games etc.
They are redundancy or not, on a up hill battle if you are playing the 1st, 2nd and 3rd game. And that is where they will sit this generation, the future depends if Microsoft are happy with their plans and market share they have I guess.
But I definitely think Microsoft do more damage to Xbox then any competitor does to them. Sometimes they seem a little self destructive at times.
@bpomber
Like I said, it is sad, and I do not agree with it. That is the way of the world as it is today. There has to be a fundamental effort to change the way the world works for this to change because is as bad if not worse in other industry areas.
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