Microsoft’s Xbox Division Closes Several Studios, Including One in Canada

What’s going on at Microsoft?

Xbox, the popular gaming brand owned by Microsoft, is reportedly shuttering several studios — including Alpha Dog Games in Canada.

According to Reuters, the closures will help the company invest deeply into its portfolio of games and new intellectual property.

Xbox refused to disclose the exact number of employees impacted by the restructuring.

The development comes just months after Microsoft eliminated approximately nine per cent of its gaming division — affecting hundreds of positions.

SEE ALSO
• Microsoft acquiring video game giant Activision Blizzard for $69 billion
• Microsoft cutting hundreds of jobs, second round of layoffs in months
• Microsoft Layoffs: 10,000 positions being axed, realigning ‘cost structure’

Termination agreements for Microsoft Canada employees

In Canada, non-unionized employees at Microsoft and its subsidiaries (i.e. Xbox) are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any 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 the 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.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for video game industry staff
• Severance packages during mass layoffs

Major tech layoffs continue

The restructuring within Microsoft’s gaming division comes amid a flurry of tech sector layoffs in 2024.

Big names, including Tesla, Rivian, SAP Canada, Take-Two Interactive, IBM Canada, Netflix, Amazon, Intel, Lightspeed, Dell, Cisco, Mozilla, and Instacart, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Whirlpool Layoffs: 1,000 positions axed amid slow home sales
• Gameloft cuts Canadian jobs in April: 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.