The current ‘Big Reset’ process that’s underway in Xbox sees a total of 8% of employees being laid off along with four studios being sold which means they’re likely to go independent now. The overall Reset will continue throughout this year and will result in the company letting go of 15% of employees by the end of the current financial year, with 8% of those cuts happening today.
The news broke out via The Verge which states: “The layoffs will impact around 8 percent of the Xbox division today, with plans to eliminate a total of around 20 percent of Xbox jobs by the end of the financial year. Microsoft is also selling off four Xbox studios and weighing up selling another studio as it looks to “reset” its Xbox business after years of struggles.”
Also, in an internal memo to all employees, Amy Coleman, executive vice president and Microsoft’s chief people officer, has said, “Decisions like these are never easy, and you have my commitment that we are constantly looking for ways to reduce the need for job eliminations” while also adding that “Whenever possible, our priority is to place people into new roles aligned to the company’s highest priorities and greatest areas of opportunity. Over the past year, we have redeployed more than 4,000 employees into new roles, including another 500 this month.”
According to a new statement by Xbox CEO Asha Sharma, a total of 1600 layoffs will take place today and by the end of the current fiscal year, 3,200 employees will be let go.
And on the four studios being sold which includes Compulsion Games, Sharma stated: “Compulsion Games and Double Fine Productions will return to management and transition to independent studios with their IP, catalog, and runway for their next games. Ninja Theory and Undead Labs have entered terms to join new ownership with funding to complete and grow Senua and State of Decay 3. In France, Arkane’s management is beginning required consultation with its Works Council to review potential strategic options.”
At the time of this writing, Compulsion Games is confirmed to go independent while the future of the rest of the three studios which includes Arkane Lyon, is unclear.
