Recently, foreign media outlet VGC reported that Microsoft plans to lay off hundreds more Xbox employees this week, marking the second major wave of staff reductions this year, while simultaneously consolidating several of its game studios.
The report did not provide detailed specifics on the implementation plan for this Xbox studio consolidation, but revealed that the integration plan will involve Xbox Game Studios, Bethesda, Activision, and Blizzard's publishing operations, leading to studio mergers and internal personnel transfers.
In July this year, Microsoft implemented a large-scale round of layoffs within its Xbox division, directly eliminating 1,600 positions at the time, with plans to cut another 1,600 before the end of the fiscal year. Microsoft has yet to confirm specific details about the remaining positions to be cut, while Blizzard, the developer behind Diablo V and World of Warcraft, was relatively less affected in the previous round of layoffs.
New Xbox CEO Asha Sharma has proposed a plan to return Xbox to a growth trajectory and reset its business. As part of this initiative, Xbox has severed ties with several of its studios; Compulsion Games and Double Fine Productions have regained full independence. Ninja Theory and Undead Labs have also finalized terms to be taken over by new ownership.
During the first wave of layoffs, ZeniMax Online, the development team behind The Elder Scrolls Online, saw hundreds of job losses, and id Software, the creator of the Doom series, also laid off approximately 100 employees.
Previously, Sharma stated at the Bloomberg Technology Conference that the current state of Xbox's business is unhealthy, and she intends to complete a comprehensive reset and adjustment of the entire operation.