Tag Archives: layoffs

EA To Lay Off 5% Of Workforce – About 670 Employees

Electronic Arts, ,

Electronic Arts announced Wednesday that it will cut 5% of its workforce, part of a plan that includes reducing office space and ending work on some video games, CNBC reported.

EA employed 13,400 workers as of the end of March 2023, according to its most recent annual filing with the U.S Securities and Exchange Commission in May. That means the layoffs may affect about 670 jobs.

The company’s announcement marks the latest headcount reduction among video game developers in recent months, continuing a broader trend of significant downsizing across the tech industry.

On Tuesday, Sony said it would lay off about 900 employees in its PlayStation division, or 8% of its workforce. Last month, Microsoft cut 1,900 jobs across its gaming unit three months after it acquired Activision Blizzard, and Tencent’s Riot Games slashed 11% of its workforce.

Engadget reported video game company Electronic Arts will lay off 5 percent of its workforce according to a report it filed with the Securities and Exchange Commission on Wednesday. More than 650 EA employees will lose their jobs as a result of the move, part of a broader restricting that will see the company cutting back on office space and ending work on some video games.

In a memo sent to EA employees, CEO Andrew Wilson wrote that the company is “streamlining our company operations to deliver deeper, more connected experiences for fans everywhere.” EA expects to finish making the cuts by early next quarter, the memo says. The cuts, Wilson adds, will let EA focus more on its “biggest opportunities — including our owned IP, sports, and massive online communities.”

One of the games that the move will directly impact is a Star Wars first-person shooter being worked upon by Respawn, a game development studio that EA acquired in 2018, according to IGN. “It’s always hard to walk away from a project, and this decision is not a reflection of the team’s talent, tenacity, or passion they have for the game,” EA Entertainment president Laura Miele reportedly told staff in a note. “Giving fans the next installments of the iconic franchises they want is the definition of blockbuster storytelling and the right place to focus.”

IGN reported that Electronic Arts announce that it, too, is undergoing mass layoffs, with plans to let go 5% of its total staff or roughly 670 individuals.

In a note today sent to staff, CEO Andrew Wilson said that EA is reacting to “accelerating industry transformation where player needs and motivations and changed significantly.” Crucially, EA also said that it is “moving away from the development of future licensed IP.” EA currently has several confirmed Star Wars and Marvel games in development, including a third Jedi game, Black Panther, and Iron Man.

In my opinion, it is exhausting to see so many video game workers lose their jobs because the gaming company they work for has decided to go in a different direction. This is going to make it more difficult for those who want to work on video games to feel assured that they won’t suddenly lose their jobs on the whim of a CEO.

Tech Layoffs Balloon in January As Wall Street Rally Lifts Tech Companies

business, , , ,

The S&P 500 is trading at a record and the Nasdaq is at its highest in two years, CNBC reported. Alphabet shares reached a new pinnacle on Thursday, as did Meta and Microsoft, which ran past $3 trillion in market cap. 

While Wall Street cheers on Silicon Valley, tech companies are downsizing at an accelerating clip So far in January, some 23,670 workers have been laid off from 85 tech companies, according to the website Layoffs.fyi.  That’s the most since March, when almost 38,000 people in the industry were shown the exits.

According to CNBC, activity picked up this week with SAP announcing job changes or layoffs for 8,000 employees and Microsoft cutting 1,900 positions in its gaming division. Additionally, high-valued fintech startup Bret laid off 20% of its staff and eBay slashed 1,000 jobs, or 9% of its full-time workforce. 

Earlier in the month, Google confirmed that it cut several hundred jobs across the company, and Amazon has eliminated hundreds of positions spanning its Prime Video and MGM Studios, Twitch and Audible divisions. Unity, said it’s cutting about 25% of its staff, and Discord, which offers a popular messaging service used by gamers, is shedding 17% of its workforce.

CNBC also reported that the swarm of activity comes ahead of barrage of tech earnings next week, when Alphabet, Amazon, Apple, Meta and Microsoft are all scheduled to report quarterly results. Investors lauded the cost-cutting measures that companies put in place last year in response to rising inflation, interest rates hikes, recession concerns and a brutal market downturn in 2022. Even with an improving economic outlook, the thriftiness continues.

International Business Times reported that the industry’s pursuit for efficiency and cost-cutting measures is thoroughly connected to tech industry riding into artificial intelligence (AI) wave. 

Meta’s CEO, Mark Zuckerberg, said 2023 was the “year of efficiency,” with a stock surge alongside 20,000 job cuts. The increasing demand for AI technologies has led some companies to strategically scale down headcount in non-profitable areas and relocate resources toward AI development.

According to International Business Times, tech execs are strategically crafting their downsizing messages emphasizing the need for focus and efficiency. Microsoft Gaming CEO Phil Spencer described the layoffs part of a larger “execution plan,” while Alphabet’s CEO Sundar Pichai focused on the importance of making tough decisions for meeting the ambitious goals. Amazon’s Audible CEO, Bob Carrigan, emphasized the necessity of becoming “leaner and more efficient”.

In my opinion, it is never a good idea to suddenly lay off employees with absolutely no warning.  Choosing to do layoffs of real humans, in favor of adding more artificial intelligence to take over their jobs, is a terrible decision. The “robots” should not be allowed to replace the livelihood of humans.

 

Microsoft Lays Off 1,900 Activision Blizzard and Xbox Employees

Microsoft, ,

Microsoft is laying off 1,900 employees at Activision Blizzard and Xbox this week, The Verge reported. While Microsoft is primarily laying off roles at Activision Blizzard, some Xbox and ZeniMax employees will also be impacted by the cuts.

The cuts work out to roughly 8 percent of the overall Microsoft Gaming division that stands at around 22,000 employees in total. The Verge has obtained an internal memo from Microsoft Gaming CEO Phil Spencer that confirms the layoffs:

“It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.

As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here.

We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.

Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories, and worlds that bring players together.”

Former Blizzard President Mike Ybarra posted on X (formerly Twitter):

“I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted — this is in no way a reflection on your amazing work. If there’s anything I can help with, connections, recommendations, etc.., DM me.

To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor. Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.

To the incredible teams at Blizzard – thank you. Words can’t express how I feel about all of you. You are amazing. Continue to do incredible things and always keep Blizzard blue and the player at the forefront of every decision.

To all of those impacted today — I am always available to you and understand how challenging today’s news is. My heart is with each one of you.”

“I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted — this is in no way a reflection on your amazing work. If there’s anything I can help with, connections, recommendations, etc.., DM me.

To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor. Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.

To the incredible teams at Blizzard – thank you. Words can’t express how I feel about all of you. You are amazing. Continue to do incredible things and always keep Blizzard blue and the player at the forefront of every decision.

To all of those impacted today — I am always available to you and understand how challenging today’s news is. My heart is with each one of you.”

Personally, I feel bad for the people who were laid off by Microsoft. It really bothers me when large corporations suddenly remove people from their jobs for no good reason.

Bored Ape Yacht Club NFT Creator Yuga Labs Confirms Layoffs

Information, , ,

Yuga Labs, the $4 billion startup behind the Bored Apes Yacht Club and other prominent NFT projects, announced Friday that it has restructured the company and eliminated certain roles as a result, leading to layoffs, Decrypt reported.

In a team email that was also shared publicly, Yuga Labs CEO Daniel Alegre wrote that he believed the startup had taken on too much internally, and that the company needed to refocus while tapping more external partners along the way.

According to Decrypt, Daniel Alegre wrote: “I realized very quickly that there were a number of projects that, while well-intentioned, either spread the team too thin or required execution expertise beyond our core competencies,” he wrote about his evaluation of the company after joining Activision earlier this year.

Alegre did not specific how many people were affected by the layoffs, and a Yuga Labs representative declined to clarify the figure to Decrypt. In the post, Alegre wrote that the restructuring impacts only United States-based employees for now, and that the company is still evaluating its international teams.

Decrypt reported that Yuga Labs was founded in early 2021 and had immediate success with the launch of the Bored Ape Yacht Club, an Etherieum NFT profile picture (PFP) project that quickly became arguably the most prominent collection in the space. Amid broader NFT market hype, Bored Ape NFTs sold for million-dollar prices in some cases, and were snatched up by celebrities.

But, as demand for NFT collectibles has plummeted over the last year-plus, prices for Bored Apes and other “blue chip” NFTs have fallen sharply, as has the price of ApeCoin. Yuga Labs grew substantially on the back of the Bored Ape buzz, but admit a weakened NFT market, the company is now slimming down as it seeks a sustainable model.

Web3IsGoingGreat reported that even the best known NFT brand can’t escape the effects of a collapsing industry. Yuga Labs, the company behind the blue-chip Bored Apes NFTs and related collections, and the acquirers of collections including CryptoPunks, has announced that it will be joining the many other companies in the crypto world performing layoffs. They did not disclose how many employees would be losing their jobs.

“It’s a challenging time, not only for our industry but also for the global economy,” wrote Yuga Labs CEO, apparently hoping that people ignorant to the past year of disaster across the NFT industry might be willing to attribute Yuga Labs’ struggles to macroeconomic forces, and not the implosion of the crypto – and particularly NFT – world.

Blockworks reported that Yuga Labs, the VC-backed NFT startup behind the Bored Ape Yacht Club and CryptoPunks, is the latest crypto firm to conduct layoffs.

According to Blockworks, Yuga Labs declined to disclose the number of layoffs, but co-founder Greg Solano posted on X that Yuga still has over 120 employees. Per Alegre’s message, the layoffs impacted the company’s U.S. teams.

As part of the changes, the company will focus on Otherside, Yuga’s gamified metaverse.

In my opinion, I don’t think its a bad thing that NFTs are less lucrative for the companies who made and sold them. There’s not a whole lot someone can do with the NFT they purchased, and this might be part of the reason why NFTs are currently going out of favor as an investment.

Google Is Laying Off Hundreds Of Workers In Its Recruitment Division

google,

Google is laying off hundreds of people across its global recruiting team as hiring at the tech giant continues to slow. The company declined to cite what percentage of its recruiting workforce was impacted, but said that it plans to retain a significant majority, Semafor reported.

“The volume of requests for our recruiters has gone down,” Google spokesperson Courtenay Mencini said in a statement. “In order to continue our important work to ensure we operate efficiently, we’ve made the hard decision to reduce the size of our recruiting team. We’re supporting everyone impacted with a transition period, outplacement services, and severance as they look for new opportunities here at Google”, Semafor reported.

CNN reported that Google confirmed it will lay off hundreds of staff members who helped recruit and hire employees, as Silicon Valley continues its cost-cutting efforts.

The latest cuts come after Google parent Alphabet in January eliminated 12,000 jobs, or about 6% of the workforce, across the company as it grappled with economic uncertainty that hit the company’s bottom line last year, especially its core advertising business.

During Google’s July earning call, CEO Sundar Pichai said the company was continuing to slow its “expense growth and pace of hiring”.

According to CNN, the cuts will affect a few hundred members of Google’s recruiting organization globally; most of the team will remain and continue hiring for critical roles such as top engineering talent, according to Google. The company did not specify the exact number of layoffs in the department.

Google also said the recruiting cuts are not part of any wider layoffs, and that affected employees will be supported with severance offers and other benefits.

CNBC also reported that Google is cutting hundreds of jobs in its global recruiting organization as part of a broader pullback in hiring over the next several quarters.

“We unfortunately need to make a significant reduction to the size of the recruiting organization,” Brian Ong, Google’s recruiting vice president, told employees in a Wednesday video meeting, a recording of which was obtained by CNBC.

“It’s not something that was an easy decision to make, and it definitely isn’t a conversation any of us wanted to have again this year,” Ong said. “Given the base of hiring that we’ve received the next several quarters, it’s the right thing to do overall.

Employees involved in the recruiting group reductions will receive emails starting Wednesday, Ong said.

In my opinion, when a large corporation suddenly chooses to fire hundreds of the people who helped them to recruit workers – something has gone terribly wrong. It indicates that Google is struggling. Less recruitment means the company will have difficulty if and when it decides to start hiring again.

Meta Is Preparing To Notify Employees of Large-Scale Layoffs

Meta,

Meta Platforms Inc. (parent company of Facebook) is planning to begin large-scale layoffs this week, according to people familiar with the matter, in what could be the largest round in a recent spate of tech job cuts after the industry’s rapid growth during the pandemic, The Wall Street Journal reported.

According to The Wall Street Journal, the layoffs are expected to affect many thousands of employees and an announcement is planned to come as soon as Wednesday, according to the people. Meta reported more than 87,000 employees at the end of September. Company officials already told employees to cancel nonessential travel beginning this week, the people said.

The Wall Street Journal also reported that the planned layoffs would be the first broad head-count reductions to occur in the company’s 18-year history. While smaller on a percentage basis than the cuts at Twitter Inc. this past week, which hit about half of that company’s staff, the number of Meta employees expected to lose their jobs could be the largest to date at a major technology corporation in a year that has seen a tech-industry retrenchment.

The New York Times reported that Meta plans to lay off employees this week, three people with knowledge of the situation said, adding that the job cuts were set to be the most significant at the company since it was founded in 2004.

According to The New York Times, it was unclear how many people would be cut and in which departments, said the people, who declined to be identified because they were not authorized to speak publicly. The layoffs were expected by the end of the week. Meta had 87,314 employees at the end of September, up 28 percent from a year ago.

Why the job cuts? The New York Times explained that Meta has been struggling financially for months and has been increasingly clamping down on costs. The Silicon Valley company, which owns Facebook, Instagram, What’s App and Messenger, has spent billions of dollars on the emerging technology of the metaverse, an immersive online world, just as the global economy has slowed and inflation has soared.

In addition, digital advertising – which forms the bulk of Meta’s revenue – has weakened as advertisers have pulled back, affecting many social media companies. Meta’s business has also been hurt by privacy changes that Apple enacted, which have hampered the ability of many apps to target mobile ads to users.

Are we looking at the end of the biggest social media giants? Massive layoffs are never a good sign for any company. It indicates that the company is losing money so quickly that it feels the need to fire a massive amount of its workforce. Meta pretty much did this to itself, by basing the majority of its income on the money it got from ads, which are less lucrative now since Apple’s changes. Twitter, on the other hand, is dealing with the chaos of Elon Musk’s choices.