The cuts continue.
Updated:
Sep 13, 2024 2:05 pm
Posted:
Sep 13, 2024 1:54 pm
The Communication Workers of America (CWA) has heavily criticized Microsoft’s announcement of a further 650 layoffs from its gaming business, with one union formed to represent Activision Blizzard’s World of Warcraft team calling the cuts “heartless.”
Yesterday, September 12, Xbox chief Phil Spencer sent a memo to staff, obtained by IGN, outlining plans to let 650 staff go, mostly from Activision Blizzard’s corporate and supporting functions, while confirming no games or devices were canceled and no studios were being closed.
However, two Activision Blizzard development teams were also hit: Activision’s Call of Duty Warzone Mobile team, and Blizzard’s Warcraft Rumble team.
These latest layoffs mean Microsoft has cut an eye-watering 2,550 staff from its gaming business since acquiring Activision Blizzard for $69 billion in 2023. In his memo, Spencer made it clear that the cuts were related to the acquisition.
Every Video Game Franchise Xbox Owns After Acquiring Activision Blizzard
In response, the CWA issued a statement hitting out at Microsoft’s plans. “Microsoft’s decision to lay off 650 video game workers is an extremely disappointing move from one of the world’s largest and most profitable corporations,” the CWA said. “This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July. While none of those who are losing their jobs are represented by CWA, we understand how devastating layoffs are to the workers and their families.”
While we would hope that a company like Microsoft with $88 billion in profits last year could achieve ‘long term success’ without destroying the livelihoods of 650 of our colleagues, heartless layoffs like these have become all too common.
The CWA also included a statement from Samuel Cooper, senior producer at World of Warcraft and member of the World of Warcraft Game Makers Guild. WoWGG was formed as part of the CWA in July after the developers behind World of Warcraft, one of the world’s biggest and longest-running MMORPGs, officially unionized. It is Blizzard’s first ever “wall-to-wall” union, encompassing the entirety of a game development team instead of just one division, like QA. WoWGG is officially recognized under Microsoft’s labor neutrality agreement and certified by an independent arbitrator.
“Every worker deserves a voice on the job and a say over the impact of job cuts,” Cooper said. “While we would hope that a company like Microsoft with $88 billion in profits last year could achieve ‘long term success’ without destroying the livelihoods of 650 of our colleagues, heartless layoffs like these have become all too common. We stand in solidarity with everyone who lost their job today and encourage all video game workers to join with us and form unions so we can protect each other.”
Speaking in August, Spencer said the pressure is now on Xbox to deliver following Microsoft’s acquisition of Activision Blizzard. “And we run a business,” Spencer said. “It’s definitely true inside of Microsoft the bar is high for us in terms of the delivery we have to give back to the company. Because we get a level of support from the company that’s just amazing and what we’re able to go do.”
The CWA also pointed to recent and controversial comments from former Sony Computer Entertainment Europe President Chris Deering, who said laid off game workers should “go to the beach for a year” or “drive an Uber.”
Those comments, the CWA said, “shows how insulated many executives are from the impact of their decisions on their workers.”
The past two years have seen over 20,000 video game industry layoffs as big companies including Microsoft, Sony, and the embattled Embracer Group have not just cut jobs but shut down entire studios.
Microsoft closed Redfall developer Arkane Austin alongside Hi-Fi Rush and Ghostwire Tokyo developer Tango Gameworks in May 2024 in a move met with shock and anger by industry peers and fans.
Meanwhile, Embracer Group shut down Saints Row developer Volition in 2023, among others. Chinese video game company NetEase also reportedly laid off most staff at Visions of Mana developer Ouka Studios with plans to shut it down altogether.
Amid these drastic cuts has been a corresponding emergence of unions representing the video game industry. In July, Skyrim and Fallout developer Bethesda Game Studios became the first Microsoft developer to fully unionize under CWA.
Photo credit: CFOTO/Future Publishing via Getty Images.
Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
