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Microsoft is cutting 10,000 jobs, including at Xbox and Halo Studios

An image of shadowy figures within an illuminated Xbox logo.

Image: Kotaku/Kevork Djansezian (Getty Images)

Following rumors released earlier this week sky newstech giant Microsoft has announced a slew of layoffs affecting 10,000 employees, some of them within the game studios. my city has confirmed that a number of developers at 343 Industries, The Coalition and Bethesda Game Studios are being laid off.

According to a Bloomberg report, at least 878 positions at Microsoft’s Washington location have been cut. Microsoft CEO Satya Nadella said the company started notifying affected employees today and plans to lay off the full 10,000 by the third quarter of this year.

Nadella tried to win the layoffs a blog post today, noting that the 10,000 jobs cut represent less than five percent of the total workforce. He claimed the company will invest in “long-term secular growth and competitiveness” while providing support to people affected by the layoffs.

The CEO added that because customers “[optimized] their digital spend to do more with less,” some headcount reduction was necessary to align operating costs and revenues with customer demands. However, he noted that Microsoft still intends to “engage in key strategic areas.”

When asked for comment, Microsoft my city to Nadella’s statement.

Recently, the affected studio 343 Industries has had its hands full with support Halo infinity, the latest installment in the long-running sci-fi FPS series. Bethesda, on the other hand, is hard at work on its upcoming space epic Star fieldthat one “self-contained [presentation]sometime this year. Meanwhile, the coalition apparently working a new IP address next to another entry in it Weapons of war franchise.

It is unclear how these projects will be affected in the wake of the layoffs.

This round of Microsoft layoffs comes a year later the company announced its plan to buy Activision Blizzard for $70 billion. However, the deal did not go smoothly with a number of government agencies, including the European Union and the FTC, objecting to the proposed takeover. Players are also not happy with the company’s consolidation a group that wants to sue Microsoft for what they call anti-competitive practices.

Additional reporting by Sisi Jiang.

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