Microsoft Gaming Layoffs: 3% of global workforce cut, after Activision Blizzard acquisition

What’s happening at Microsoft Gaming?

Microsoft Gaming has announced that it will lay off approximately 650 employees, representing about 3% of its global workforce. This decision follows Microsoft’s $69 billion acquisition of Activision Blizzard in 2023 and is part of ongoing restructuring efforts within the company.

Official Statements and Context

Phil Spencer, CEO of Microsoft Gaming, stated that the layoffs will primarily affect corporate and supporting functions, with minimal impact on game development teams.

• U.S. employees will be provided with severance, extended healthcare, and outplacement services, while packages for international employees will vary by location.
• In a message to staff obtained by Variety, Spencer explained the rationale behind the cuts: “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming—mostly corporate and supporting functions—to organize our business for long-term success.”
• Spencer confirmed that no video game titles, devices, or studios would be shut down as part of the cuts
• Some teams will experience changes as priorities shift within the company.

Broader Industry Layoffs

This move follows a wave of job reductions across the gaming industry, with major players such as Sony Interactive, Riot Games, Take-Two Interactive, and Electronic Arts also announcing layoffs. Earlier this year, Microsoft had already eliminated 1,900 roles, or about 8% of its workforce at the time, affecting divisions including Xbox, Activision Blizzard, and ZeniMax.

In May, Microsoft closed three game studios under its Bethesda Softworks subsidiary: Arkane Austin, Alpha Dog Studios, and Tango Gameworks. A fourth, Roundhouse Games, was merged with the team behind “The Elder Scrolls Online” at ZeniMax Online Studios.

Layoffs in Canada

It remains unclear exactly how many Microsoft Gaming employees in Canada will lose their job as a result of this layoff.

Your rights

In Canada, non-unionized employees at Microsoft Gaming are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Wells Fargo, Intuit, Goldman Sachs, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.