Comments
Microsoft only just announced the sweeping cuts and layoffs that had been rumored for some time. Thousands of people were impacted, and Xbox has divested from multiple studios as a result. Even teams that weren’t cut loose saw layoffs. However, things have generally been quiet around Blizzard Entertainment, one of Xbox’s largest studios. This is only officially speaking, though, as president Johanna Faries has now weighed in on these developments through a leaked email sent to Blizzard employees.
As reported on by Windows Central, Faries acknowledged the green elephant in the room and talked about the layoffs, but didn’t offer specifics about what that meant for the house of Diablo and Overwatch.
“Blizzard, Asha shared updates regarding a planned reset across XBOX, with many colleagues across the division being impacted,” read the email. “While you can expect to hear more details regarding the day’s events and what they mean for Blizzard in further communications, for now I simply want to acknowledge that today is a difficult day that impacts many people in a range of ways. Please take care of yourself and others in this moment as best as possible. In light of today’s news I want to thank everyone across Blizzard for moving with focus and creativity behind our strategic priorities, supporting our myriad communities and each other throughout. We continue to build upon that very strong foundation. Thank you for your continued collaboration in these highly dynamic times.”
Windows Central’s report went into a little more detail. Blizzard allegedly saw “comparatively minimal reductions” when compared to other teams. However, given how dire those cuts elsewhere have been, that doesn’t necessarily mean only a few people were let go. More layoffs are planned for later in the year, too, so it is entirely possible Blizzard may see more people leave when that nebulous date rolls around. According to Windows Central, Blizzard employees are understandably criticizing the layoffs, partially because of the foggy nature of it all. Wondering if you’ll still have a job months down line isn’t exactly a morale booster.
Blizzard Entertainment Still May Face Layoffs Later, Though
The outlet also explained how BlizzCon is still planned for September 2026, which is when the rumored StarCraft shooter is supposed to be revealed. TV and films based around Blizzard properties are also reportedly in line with Xbox CEO Asha Sharma’s transmedia approach, which is seemingly a semi-promising sign for the team’s overall future.
However, absolutely nothing is certain here. As the game’s industry has shown time and time again, success doesn’t automatically “save” a studio. Despite putting out a well-reviewed Spider-Man game that became the fastest-selling first-party game in PlayStation’s history, Insomniac Games cut jobs shortly after launching Marvel’s Spider-Man 2. 007 First Light was also critically acclaimed and blew through expectations by selling over 3 million units in a matter of weeks, yet IO Interactive still had layoffs (coincidentally, this is also related to Xbox, as it pulled funding from the team). Xbox itself even praised Hi-Fi Rush just after closing the studio that made it. And even though Obsidian Entertainment has released six well-liked games under Xbox — which is almost unheard of in this age of elongated development cycles — it is still seeing drastic layoffs.
So even though Overwatch made a respectable comeback after the launch of its divisive sequel and Diablo 4 just received a well-liked expansion with Lord of Hatred, Blizzard isn’t totally in the clear. Microsoft seems intent on feeding as much as it can into the artificial intelligence machine and other branches are meant to pick up the slack. This process seemingly has no end in sight, either, especially given how more cuts are promised for later this year.
What do you think? Leave a comment below and join the conversation now in the Forum!
Xbox Game Pass Subscriber Numbers Reportedly Fail to Hit Outrageous Expectations
