Microsoft’s gaming chief Phil Spencer has addressed the job cuts at the company this week, telling employees they are “painful decisions”.
On Wednesday, Microsoft confirmed plans to lay off about 4.5% of the US tech giant’s 220,000 employees (roughly 10,000 people).
Finally, it was confirmed that this affected the company’s gaming divisions, specifically Halo developer 343 Industries, Bethesda Game Studios and Marketing.
On Friday, Phil Spencer sent out a company-wide email, received and released by Kotaku, telling employees the cuts would ensure it’s long-term success.
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“This has been a difficult week for Microsoft and here on our teams,” he wrote. “Now that many of the 1:1 and team meetings have taken place, I want to take a moment to reiterate the message you heard from your leaders.
“This is a challenging moment in our business and this week’s actions have been painful decisions. The Gaming Leadership Team has had to make decisions that we believe have positioned us for the long-term success of our products and business, but the individual outcomes of those decisions are real. I know this hurts. Thank you for supporting our colleagues in processing these changes.”
The email continued, “Over the coming weeks we will have many opportunities to network and answer your questions, including next week’s monthly gaming update for teams attending this meeting, and I’m in close contact.” with the teams at ZeniMax to provide support.
“The GLT and I are committed to being as transparent as possible. Moving forward with uncertainty is a challenge, but I am confident that together we will get through this difficult moment.
“Xbox has a long history of success thanks to the work you do to serve gamers, developers and each other. Your work is so valued and appreciated during these times of change and is an integral part of our business dynamic.
“I’m confident in our future and proud to be part of this team, but I also recognize that this is a challenging time and I want to thank you for everything you’re doing here.”
On Wednesday, Microsoft claimed the cuts were made “in response to macroeconomic conditions and changing customer priorities.”
The company was intentionally targeting those it believed were “underperformers” in at least some parts of the company, according to a Business Insider report released the same day.