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In the past year, job cuts have been arduous not only in the gaming sector but also across the broader tech landscape. Whether driven by the impending threat of a recession or an effort to rectify the possible over-staffing during the COVID-19 period, employment stability has become a pressing concern for many. As an IT specialist, I share this concern. With the new year just beginning, it appears that the past struggles persist.
According to Business Insider, Microsoft is dismissing staff across various segments of its organization. These divisions include security, experiences, sales, devices, and gaming.
“A Microsoft representative mentioned that the layoffs are minor but did not indicate a specific number and are unrelated to the job reductions Business Insider has recently reported on targeting underperforming employees throughout the organization. Individuals informed about the situation noted that employees began receiving notifications on Tuesday regarding layoffs in Microsoft’s security division.”
As highlighted by Business Insider, this follows just a week after reports emerged stating that Microsoft was aiming to lay off underperforming staff. While the exact figure isn’t disclosed, it’s increasingly disheartening to witness ongoing layoffs in the sector. This cycle seems relentless.
These reductions occur merely months after Microsoft reportedly let go of approximately 650 employees from the gaming team. “In order to align our post-acquisition team structure and manage our operations, we have decided to eliminate around 650 positions across Microsoft Gaming—primarily corporate and support roles—to position our business for sustainable success,” Spencer communicated to the teams via email.
Once again, this comes mere months after the prior layoffs. The industry has been severely affected for the last two years, with 10,500 jobs lost in 2023 and an additional 14,600 positions in 2024. These reductions involve entities like Embracer Group, Microsoft, Electronic Arts, Sony, Epic, Take Two, Riot, and more. To exacerbate the situation, over 30 entire video game development studios have terminated their entire workforce. Notable studios impacted include Arcane Austin, Firewalk Studios, and the particularly unfortunate layoffs at Tango GameWorks. Even Game Informer has closed its doors.
For those of us employed in the tech sector, it’s a daunting period to face job loss. It’s a challenging circumstance anywhere, but the perils associated with AI are escalating globally; professionals like us in the field find ourselves increasingly vulnerable. AI is becoming prevalent in attempts to streamline operations, optimize efficiency, and even promote sustainability. Sometimes to grow, sometimes for the sake of appearance.
I have encountered tales of recent potential job openings that managers have pursued being declined to make the project redundant through AI. Even when the concept isn’t superior to employing an actual individual, the primary focus is on how economically a company can operate. So why am I bringing AI into this discussion?
These dismissals follow closely after a recent Microsoft patent that examines the application of AI in gaming. While intended as a tool for user narrative development, it seems likely that a corporation investing billions in OpenAI will utilize it whenever possible. Here’s hoping that those impacted can locate new opportunities to call home soon.
What about the readers? How do you perceive the latest layoffs at Microsoft? Do you know anyone who has been impacted? Share your experiences below or on social media with us. Every voice deserves to be heard.
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