On Wednesday, Microsoft laid off several employees from Halo Studios as part of a broader company restructuring, impacting around 200-300 staff who remain. The decision followed a message from Xbox Gaming CEO Phil Spencer, indicating organizational changes aimed at improving “agility and effectiveness.” The mood within the studio is reportedly tense, with ongoing dissatisfaction regarding the quality of their products, especially following the tumultuous launch of Halo: Infinite.
Historically, Halo Studios, previously 343 Industries, has faced criticism for its reliance on contractors, which has affected production timelines. Job cuts across Microsoft’s gaming division have included significant layoffs earlier this year, with several notable game projects being canceled. As Microsoft shifts focus toward AI integration to streamline processes, there’s speculation about the role of AI in these layoffs.
Overall, the gaming division is undergoing major changes amid mixed employee sentiments and productivity challenges, coinciding with hints of financial success from the company, which reported increased revenues. Microsoft stated that the layoffs represent less than 4% of its global workforce and are part of necessary adjustments to thrive in a changing market.
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