Summary
- Microsoft's layoffs continue to impact the gaming industry, with 86 employees from Toys for Bob and 76 workers from Sledgehammer Games affected.
- Despite Microsoft's recent acquisitions and strong gaming portfolio, the tech giant has been the cause of thousands of layoffs in the gaming industry.
- The layoffs at Microsoft highlight the changing landscape of the gaming industry and the broader shifts happening within major companies. Employee impact remains a crucial concern.
The recent Microsoft layoffs are going to affect 86 employees at Skylanders’ Toys for Bob and 76 workers at Sledgehammer Games. It’s only been a month since the start of the year, and layoffs keep hitting the gaming industry. Days pass, and more people seem to be affected by Microsoft's massive layoffs.
Microsoft has played a significant role in the video game industry through its Xbox brand and associated services. Microsoft's acquisition of Bethesda Softworks parent company ZeniMax Media as well as the recent purchase of Activision Blizzard has bolstered its gaming portfolio, providing exclusive titles and strengthening its position in the market. Despite its importance in fostering the gaming landscape, the tech giant has been the protagonist of thousands of layoffs that have hit the gaming industry in 2023, and this trend seems not to stop during 2024 when Microsoft announced nearly 1900 layoffs in January.
Microsoft Becomes $3 Trillion Company After Mass Layoffs
Just days after announcing major layoffs, Microsoft achieves a new feat of becoming a $3 trillion company, sparking mixed reactions.
How Do Microsoft's Layoffs Affect Toys for Bob and Sledgehammer Games?
As reported by the San Francisco Chronicle, Microsoft’s mass layoffs are affecting 162 workers located in Novato and Foster City. According to state filings, the Novato layoffs correspond to the address of Toys for Bob, the studio known for creating Skylanders, and the facility is also set to close, while in Foster City, the layoffs match the location of Activision subsidiary Sledgehammer Games. Furthermore, Sledgehammer Games is not only laying off employees but also closing its office temporarily, with workers transitioning to remote work.
Sledgehammer Games is a prominent video game development studio established in 2009 and renowned for its contributions to the Call of Duty franchise. On the other hand, Toys for Bob is a well-regarded game development studio that gained prominence through the creation of the Skylanders series, which introduced the toys-to-life concept. This concept allows physical figurines to be placed on a portal device to interact with the corresponding characters in the game world.
The scope of Microsoft layoffs also affected most of the Blizzard customer service team as well as the departments dedicated to bringing physical Xbox games to retail, allegedly due to a cost-saving restructuring the company needs. As recently reported, Microsoft has become only the second company ever to reach a $3 trillion market value after announcing its massive wave of layoffs.
The layoffs at Microsoft not only underscore the evolving landscape of the gaming industry but also highlight the broader shifts taking place within major companies. As the industry navigates changes in consumer preferences, technological advancements, and corporate strategies, the impact on employees remains a critical concern.