Toys for Bob, the developer behind Crash Bandicoot, and Sledgehammer Games, known for the Call of Duty series, are reportedly facing significant staff reductions of around 40% and 30%, respectively. These layoffs are part of Microsoft’s broader decision to cut 1900 positions across its video game teams.
Xbox head Phil Spencer addressed the layoffs in an email to employees, describing it as a “painful decision” following Microsoft’s massive acquisitions, including the $69 billion Activision Blizzard deal last year and the $7.5 billion Zenimax acquisition in 2021. Microsoft had previously laid off nearly 900 positions around the same time last year.
These Xbox layoffs are such a mess that staff across Activision Blizzard are texting *me* to try to find out if they might be impacted. Nearly 2,000 job cuts and people now just have to wait around to see if they're part of the bloodbath
— Jason Schreier (@jasonschreier) January 25, 2024
Bloomberg’s Jason Schreier revealed that Activision Blizzard employees have been reaching out to him directly to determine if they are among those affected. Industry insider Tom Henderson added that the 40% reduction at Toys for Bob translates to approximately 35 staff members.
The situation at Sledgehammer Games appears equally challenging, with LinkedIn listing their employee count between 500 and 1000. This suggests that anywhere from 150 to 300 staff members could be impacted by the layoffs.
The gaming industry has experienced a turbulent start to the year, with several companies, including Riot Games (developer of League of Legends), Black Forest Games, Unity, Behaviour Interactive, and CI Games (publisher of Lords of the Fallen), announcing layoffs. Despite the challenges, the gaming community remains diverse, welcoming players of all interests, from Assassin’s Creed to Zoo Tycoon.
