It seems that the previous day’s reports ring true. Microsoft officially announced the plans for 10,000 layoffs earlier today. Multiple sources have confirmed the layoffs will be affecting workers within prominent Xbox developer studios. According to Microsoft CEO Satya Nadella, these layoffs are to be in effect til the end of the Q3 of this fiscal year. This situation has come about as the after effects of the pandemic job boom and concerns over an economic downturn. Microsoft has been the latest in an escalating number of layoffs within the tech industry, with Amazon recently laying off around 18,000 of its workforce. In a statement addressed to Microsoft employees, Nadella spoke about the impact of these layoffs on the company and their strategic plans going forward.

“We’re living through times of significant change, and as I meet with customers and partners, a few things are clear,” said Nadella. “First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less…This is the context in which we as a company must strive to deliver results on an ongoing basis while investing in our long-term opportunity. I’m confident that Microsoft will emerge from this stronger and more competitive, but it requires us to take actions grounded in three priorities…”

Nadella stated that Microsoft would be “strategically hiring” in certain areas to make up for jobs lost, likely AI and cloud services, due to the company’s recent efforts to enter into those fields.

Microsoft won’t share specific numbers, but several employees have told me that 343 Industries was hit hard. This comes in the wake of a long-running hiring freeze and a lot of contractor departures

— Jason Schreier (@jasonschreier) January 18, 2023

Among the many departments affected, Kotaku and Bloomberg confirmed that the layoffs hit Xbox developers 343 Industries and Bethesda Game Studios hard. Employees within the U.S. will have some reprieve thanks to Microsoft’s career transitioning services. Regardless, many former employees from those respective studios took to Twitter expressing their sadness and disappointment at their sudden job loss.

Like so many others today, my role was one that was eliminated. I’m not sure what’s going to happen with Edge Insiders yet. There’s a ton of great teammates watching the @MSEdgeDev handle who can help, even if they aren’t responding. Here’s to my next challenge, whatever it is. pic.twitter.com/MFJqD7rdkL

— Missy Q (@MSEdgeMissy) January 19, 2023

Well, I will no longer be the Live Broadcast Producer at 343. I’ve enjoyed my time with the teams I’ve worked with. I’m proud of what the work I’ve done and everything we accomplished. Time to look for the next opportunity. pic.twitter.com/CwB7fskWvR

— Joshua Hnosko (@Hnerskers) January 18, 2023