Amidst news of a mass layoff of 10,000 people at Microsoft, a number of employees at Xbox Game Studios The Coalition, 343 Industries, and Bethesda are learning their jobs are being impacted.
According to reports at Bloomberg and Kotaku, a number of developers at the three Xbox studios were informed today that their positions were being elimintated. In total, 878 positions are being impacted immediately in Washington across all of Microsoft, while further layoffs are expected through March.
Specifically, layoffs hit The Coalition (which is responsible for the Gears franchise as well as an upcoming new IP), 343 Industries (which has been working on ongoing support for Halo Infinite), and Bethesda (working on the upcoming Starfield). It is not yet clear specifically how the layoffs impacted any of these projects, or how many people from each studios were affected.
In a blog post alongside the layoffs, CEO Satya Nadella noted that the layoffs represented less than 5% of Microsoft’s massive workforce, and claimed they were a result of slowing digital consumer spending, as well as an ongoing recession. Microsoft already laid off “hundreds” in October of last year in a wave that was thought to impact its gaming divisions as well.
This news comes a year to the date that Microsoft first announced its deal to acquire Activision Blizzard for $69 billion, a deal that remains in legal limbo in the US, UK, and now EU. Activision Blizzard would bring nearly 10,000 new employees into Microsoft if the deal went through.
Rebekah Valentine is a news reporter for IGN. You can find her on Twitter @duckvalentine.
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