Developers of Crash Bandicoot, Toys for Bob, and Call of Duty’s Sledgehammer Games are set to lose approximately 40% and 30% of their staff, respectively. The job cuts are part of Microsoft’s move to reduce its video game division workforce by 1,900 employees. In an email to staff, Xbox chief Phil Spencer described the decision as “difficult” following Microsoft’s acquisition of Activision Blizzard for $69 billion last year and Zenimax for $7.5 billion in 2021. Microsoft also eliminated around 900 positions last year.
Newscast: Why are so many game companies losing their jobs? Newscast: Why are so many game companies losing their jobs? According to Bloomberg’s Jason Schreier, employees at Activision Blizzard have reached out to him directly to inquire about their potential impact, while industry writer Tom Henderson estimates that 40% of Toys for Bob’s employees would amount to about 35 employees (thanks, TheGamer). The severity of this Xbox workforce reduction is such that Activision Blizzard employees are contacting *me* to determine if they will be affected. Almost 2,000 individuals have lost their jobs and now await to learn if they will be part of the layoffs — Jason Schreier (@jasonschreier) January 25, 2024 To view this please enable cookies. In contrast, Sledgehammer is listed on LinkedIn as having between 500-1000 employees, suggesting that approximately 150 to 300 employees could be impacted by the layoffs. It has been a bleak start for the industry. As briefed by Victoria, this month has witnessed several other companies announcing layoffs, including Riot Games, Black Forest Games, Unity, Behavior Interactive, and CI Games. Earlier this month, GDC released its 2024 State of the Game Industry report, revealing that 35% of game developers have experienced job cuts in the past 12 months. Half of the respondents admitted they were worried about further job losses.
