Microsoft layoffs reportedly impact Starfield, Halo Infinite teams

Microsoft on Wednesday announced that 10,000 of its employees will lose their jobs in the coming months. This represents a reduction of 5%. CEO Satya Nadella did not detail precisely where those cuts would take place at the company, but noted in a letter to employees there would be “changes to our hardware portfolio,” which could impact Microsoft’s HoloLens, Surface, and PC accessories business, The Verge reports.

According to Bloomberg, Microsoft’s layoffs are also affecting the Xbox division’s games teams, with reported cuts at Starfield developer Bethesda Game Studios and Halo Infinite developer 343 Industries. Microsoft spokeswoman declined to provide further information. Bloomberg reporter Jason Schreier said on Twitter that sources said 343 Industries was “hit hard.”

A report from Kotaku corroborated Bloomberg’s reporting, and noted that employees at Gears of War studio The Coalition were also affected. That studio is currently working on “several unannounced projects,” Xbox games marketing VP Aaron Greenberg said last year.

The cuts at Microsoft will surely cast a shadow over next week’s developer-led showcase on upcoming Xbox games: The Xbox Developer Direct livestream, planned for Jan. 25, promises updates on ZeniMax Online Studios’ The Elder Scrolls Online, Arkane Studios’ Redfall, Mojang’s Minecraft Legends, and Turn 10 Studios’ Forza Motorsport. Bethesda’s StarfieldMicrosoft claims that the presentation will be available as a standalone at a later time.

Nadella said that, despite the mass layoffs, Microsoft will “continue to hire in key strategic areas.” The company is currently working to bring some 9,800 employees from Activision Blizzard into the Microsoft fold, as part of the Xbox maker’s planned $68.7 billion acquisition.