Microsoft to lay off 10,000 people, cuts also affected Bethesda and other studios

American giant Microsoft will fire in a big way. About 10,000 people are expected to quit this year, about five percent of all employees. According to Bloomberg, it will also include developers from Bethesda and 343 Industries. The former studio is currently finishing up the sci-fi RPG Starfield, while the latter is working on the shooter Halo Infinite, which is over a year old.

Microsoft confirmed the cuts this week in a report to regulators. The layoffs must take place before the end of March.

Meanwhile, there are reports that layoffs at 343 Industries are quite significant. The gaming site Lords of Gaming writes, citing its sources, that the seats are canceled mainly by “persons working in the single-player division.” it confirmed and journalist Jason Schreier of Bloomberg, who added that, according to his information, incompetent management or short-term contracts of some colleagues are to blame for the studio’s problems.

Strong public words from a Halo developer, mirroring what I’ve heard from many other Halo developers. (Other issues we reported included tools and heavy reliance on contractors who had to be fired after 18 months) https://t.co/z4m1xtDS8T.

— Jason Schreier (@jasonschreier) January 19, 2023

In addition, the Kotaku server writes about several released by the developers from The Coalition studio, which is rumored to be working on a new addition to the Gears of War series.

The cuts come a year after Microsoft announced it was buying Activision Blizzard (and so far, the process hasn’t gone smoothly). Microsoft is also struggling with weak demand for Windows software. Already last summer, the company announced minor layoffs, according to the Axios server, it was about a thousand employees in various branches. According to the company’s official statement, the layoffs are “a response to macroeconomic conditions and changing customer priorities.”

A number of other tech companies have also been cutting jobs in recent months, such as the Amazon online store, the company that developed the Unity engine of the same name, or Meta Platforms, the owner of the social networks Facebook and Instagram.