This is the real reason behind the mass Xbox layoffs.
0 Twitter Telegram Whatsapp Facebook Following the news of the recent wave of mass layoffs at Microsoft, which immediately affected 1,600 employees and is expected to double in number over the next year, several reports have emerged claiming that the reason is due to an expansion in the approval of foreign labor visas. However, Microsoft quickly moved to deny these claims.
Frank X. Shaw, the company’s communications chief, took to platform X to confirm that the circulated information is “false.” He clarified that Microsoft does indeed employ some workers on H-1B visas, but they “are not limited to the Xbox division and represent a small percentage of the company's total workforce.” He added that “most of the positions included in the layoffs were not positions based in the U.S. to begin with.”
Shaw emphasized that the workforce restructuring was a result of the need to fix Xbox’s business situation, stating:
“The recent changes to the workforce were to restructure the Xbox division because it is not in a healthy position, and they were not carried out for the purpose of replacing employees with foreign labor.”
This statement came after several conservative media outlets highlighted Microsoft’s approval of over 2,200 H-1B visas this year. Fox News also reported that Microsoft informed them, prior to the publication of the report, that employees holding these visas were also among those affected by the layoff decisions.
The recent Xbox layoffs are among the largest layoffs ever seen in the gaming industry. In addition to letting go approximately 20% of the Xbox workforce, Microsoft also decided to part ways with five development studios.
Both Double Fine and Compulsion Games will continue to operate as independent studios, while Ninja Theory and Undead Labs are being sold to an undisclosed buyer. At the same time, Microsoft continues to explore options regarding the sale or separation of Arkane.
Despite other studios continuing their operations, they were not spared from the effects of this wave. The id Software studio was among the most affected, losing nearly half of its staff in conjunction with the launch of the latest expansion for DOOM: The Dark Ages.
I have loved video games since the days of the family console, and I prefer adventure games like Tomb Raider and Assassins Creed (before the shift to RPG), I have no bias towards any home console, for me, the best is the one that offers the most distinctive games. What matters to me are the experiences with engaging storylines as the story is the foundation of enjoyment more than gameplay.
Although spending over $80 billion…
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