addressing microsoft’s mass layoffs

Multiple Xbox Game Studios, including 343 Industries, Bethesda, and The Coalition, have been hit with layoffs following this announcement. Back in January, Microsoft announced it was laying off 10,000 employees from its 220,000-person workforce “in response to macroeconomic conditions and changing customer priorities.” At the time, it was unclear which divisions would be impacted and if any staff from Microsoft’s gaming division would be let go. As it turns out, multiple Xbox Game Studios have been hit with layoffs, with 343 Industries seemingly being hit the hardest. Around 60 staff from 343 Industries reportedly where laid off.

As reported by Bloomberg and Kotaku, employees from 343 Industries, Bethesda, and The Coalition have all been laid off. The exact numbers aren’t currently clear, but Bloomberg’s Jason Schreier reports that 343 Industries has been “hit hard,” with the Halo Infinite campaign team taking much of the brunt. Joseph Staten, who re-joined 343 in 2020 to help ship Halo Infinite, is one of the high-profile staff members leaving the studio, though he will reportedly be moving to Xbox Game Studios Publishing.

In an email seen by Bloomberg, 343 Industries studio head Pierre Hintze reportedly said the company had “made the difficult decision to restructure elements of our team, which means some roles are being eliminated.” Hintze then went on to say that 343 would continue to support Halo Infinite’s multiplayer and live service elements.

According to some reports, over 60 employees from 343 Industries have been laid off. Patrick Wren, a former senior multiplayer designer at 343 who is now working for Respawn, blamed the studio’s leadership for the state of Halo Infinite and the redundancies, saying, “The layoffs at 343 shouldn’t have happened, and Halo Infinite should be in a better state. The reason for both of those things is incompetent leadership up top during Halo Infinite development causing massive stress on those working hard to make Halo the best it can be.

“The people I worked every day with were passionate about Halo and wanted to make something great for the fans. They helped push for a better Halo and got laid off for it.”

The dust hasn’t quite settled, and it’s currently unclear if more employees from Xbox and its studios will be let go in the coming days. Microsoft CEO Satya Nadella said layoffs would continue until the end of Q3 this financial year.

The layoffs come a year after Microsoft announced plans to buy Activision Blizzard for $69 billion. The deal has been met with opposition and scepticism from several major competition authorities around the world, including the US Federal Trade Commission, the UK Competition and Markets Authority, and European Union regulators. Recently, the European Game Developer Federation, which represents 23 national trade associations for game development studios based in 22 countries, announced its support of the proposed acquisition.

Last week, Microsoft announced it would lay off 10,000 employees across the company “in response to macroeconomic conditions and changing customer priorities.” Multiple Xbox Game Studios were affected, with 343 Industries seemingly taking the brunt of the cuts. Now, Xbox boss Phil Spencer has addressed the job losses in an email sent to all Xbox staff. In the email, which was seen and published by Kotaku, Spencer called the job cuts “painful choices” and that Xbox gaming leadership “had to make decisions that we felt set us up for the long-term success of our products and business.” Here is the email in full via Kotaku:

“This has been a difficult week across Microsoft, and here, inside our teams. Now that many of the 1:1 and team conversations have happened, I want to take a moment to reiterate the message that you heard from your leaders.

“This is a challenging moment in our business, and this week’s actions were painful choices. The Gaming Leadership Team had to make decisions that we felt set us up for the long-term success of our products and business, but the individual results of those decisions are real. I know that hurts. Thank you for supporting our colleagues as they process these changes.

“Over the coming weeks we will have many opportunities to connect and answer your questions, including the Monthly Gaming Update next week for teams who attend that meeting, and I am in close contact with teams at ZeniMax to provide support. The GLT and I are committed to being as transparent as we can. Moving forward with ambiguity is challenging, but I am confident that together, we will get through this difficult moment in time.

“Xbox has a long history of success thanks to the work you do in service of players, creators, and each other. Your work is so deeply appreciated and valued in these times of change and is integral to our business momentum. I am confident in our future and proud to be part of this team, but also conscious that this is a challenging time and I want to thank you for everything you do here.”

Microsoft CEO Satya Nadella said layoffs would continue until the end of Q3 this financial year, so it’s currently unclear if Xbox will be hit with more job losses. From what we’ve seen, 343 Industries, The Coalition, and Bethesda were all impacted by the cuts. 343 was hit particularly hard, leading many to speculate about the future of Halo. However, in a short statement, 343 studio head Pierre Hintze said that Halo and Master Chief “are here to stay.”