Xbox Boss Phil Spencer Says Layoffs Are "Painful" but Necessary for "Long-Term Success"

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Xbox Boss Phil Spencer Says Layoffs Are "Painful" but Necessary for "Long-Term Success"

In an email (opens in new tab) sent to employees of Microsoft's gaming division and shared by employees with Kotaku, Xbox boss Phil Spencer said that while it is "painful" for people to be laid off, it is best for the company in the long run.

"This is a difficult moment in our business, and our actions this week were painful choices," Spencer said. 'The gaming leadership team had to make a decision for the long-term success of our product and our business.' I know that painfully well. Thank you for supporting your colleagues through this process of change."

"Over the next few weeks we will have many opportunities to connect with you and answer your questions. That includes the team participating in next week's monthly game update, and I will be in close contact with the team at ZeniMax to offer support. GLT and I are committed to being as transparent as possible, and we will continue to work closely with the team at ZeniMax to ensure that we are all on the same page. It is difficult to move forward in ambiguity, but I am confident that together we will get through this difficult time."

Spencer's internal email came two days after Microsoft announced it was laying off (open in new tab) 10,000 employees worldwide. Microsoft did not say where the cuts would come from, but Bloomberg reports that the cuts will affect Microsoft's gaming division, which includes studios such as Bethesda Softworks and 343 Industries.

Former "Halo Infinite" senior multiplayer designer Patrick Wrenn effectively confirmed the report (opens in new tab) a day later. The layoffs should never have happened and "Halo Infinite" should have been in better shape because the incompetent leadership of upper management during the development of "Halo Infinite" is putting a lot of stress on the people who are working so hard to make "Halo" the best it can be.

While it is clear that the elimination of 10,000 people was due to poor judgment on the part of 343 management, Len's comments were at least heartfelt and sincere. By comparison, Spencer's statement seems very specifically crafted to superficially appease without saying anything.

"Xbox has a long history of success thanks to the work of players, creators, and everyone who serves each other. In these times of change, your work is so deeply valued and cherished, and so integral to our business momentum. I am confident in our future and proud to be a part of this team, but also aware that these are challenging times.

The announcement of the layoffs came just weeks after ZeniMax studio employees voted to form ZeniMax Workers United/CWA (opens in new tab), Microsoft's first game studio labor union and, at least for now, the largest game industry employee union in the United States This took place just a few weeks later. According to a statement released by the Communications Workers of America (opens in new tab), these employees may receive at least some protection in the termination process.

"CWA representatives have been in contact with Microsoft and are aware of the company's obligation to negotiate any proposed layoffs of ZeniMax CWA members. Members of ZeniMax's labor bargaining committee will develop a proposal that reflects their needs and offers an alternative to layoffs."

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