According to a recent report, Microsoft is offering buyouts to approximately 60,000 employees, or around a quarter of its workforce. This is yet another step in its initiative to cut costs.
The buyouts are a way for Microsoft to control the head count of its studio, while at the same time avoiding layoffs. It would apply to employees at the vice president level and below in the U.S., Canada, India, and the United Kingdom. Applicable employees may receive a “voluntary exit offer” of a standard severance package, depending on their location. It is unknown how this will affect its Xbox division.
Recently, Xbox sold off Undead Labs, Double Fine, and Compulsion Games. It is considering closing Ninja Theory as well, and leaving Arkane Studios to look for a buyer by December 13 (extended from November 13). It has also reorganized its internal studios, which it outlines as follows:
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- Activision will expand its remit to World’s Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.
- Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.
- King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.
- Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been creative and franchise partners for over a decade, and today’s changes will formally move their work into one team.
