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Microsoft To Gut European Xbox Operation


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#1 Andrew G.

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Posted 18 July 2014 - 17:14

Report: Microsoft To Gut European Xbox Operation
 
by Mike Futter on July 18, 2014 at 09:17 AM

XboxControllerInDepth-610.jpg

 

Following yesterday’s Microsoft announcement signaling the start of 18,000 layoffs (including the closure of Xbox Entertainment Studios), a report has emerged that the European Xbox operation is headed for significant staffing cuts. The operation, which is located in Reading, UK, is reported going to see reductions amounting to 75 percent of total staff.

 

According to MCV, the remaining 25 percent of positions will be filled through a re-application process. This means that even those whose positions aren’t affected will have to compete for them. 

 

Microsoft confirmed the cuts, though didn’t specify numbers. The layoffs will not impact the September launch of Xbox One in 13 more European countries. Microsoft owns studios in Europe, including Rare (Kinect Sports) and Lionhead (Fable).

 

 

http://www.gameinfor...-operation.aspx

http://www.mcvuk.com...ngs-axe/0135568

 

Not a good move ahead of tier 2 launch :no:




#2 George P

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Posted 18 July 2014 - 17:20

The 2nd launch is already locked I'd say, probably finishing up the final work, and these cuts happen later, around September and into 2015.  They're not all going to happen now or in the next few weeks, this is going to be a slower staged cut from what I've read.

 

Anyways, I bet most of those are marketing people, don't need as many of those IMO.



#3 spenser.d

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Posted 18 July 2014 - 17:25

The 2nd launch is already locked I'd say, probably finishing up the final work, and these cuts happen later, around September and into 2015.  They're not all going to happen now or in the next few weeks, this is going to be a slower staged cut from what I've read.

 

Anyways, I bet most of those are marketing people, don't need as many of those IMO.

 

Not to mention they aren't doing a particularly good job if we measure by sales (they're getting trounced in the EU, whereas it's at least close in the US). They could use some newcomers over there.



#4 HawkMan

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Posted 18 July 2014 - 17:26

Don't think it will affect much, heck as I recall. Sony pretty much killed their entire EMEA office during their reorg.



#5 Enron

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Posted 18 July 2014 - 17:37

Microsoft cuts 18,000 jobs

 

So the jobs are on the clipboard now?



#6 HawkMan

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Posted 18 July 2014 - 17:56

I need that black and white movie golf clap gif.... that was warwagon horrible.



#7 GotBored

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Posted 19 July 2014 - 00:36

I need that black and white movie golf clap gif.... that was warwagon horrible.

 

MIj6o.gif

 

This one?

 

Found few others too:)

 

u8awa.gif

 

kQWV2.gif

 

s3AoP.gif

 

lNEg8.gif

 

golf-clap.gif



#8 McKay

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Posted 19 July 2014 - 00:43

Right let's cut down in a huge potential market where Europe has traditionally been neutral, a market you havent even launched 100% in the major countries, and meanwhile continue to pour money into Japan, a country where almost nobody wants a foreign console. 



#9 Audioboxer

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Posted 19 July 2014 - 01:33

Europe is where the toughest battle for MS is :/

To be fair though Rare have been "dead" for quite a while.

#10 Torolol

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Posted 19 July 2014 - 01:39

well, XBOX is the most money bleeding division on Microsoft empire.

#11 HawkMan

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Posted 19 July 2014 - 14:12

Right let's cut down in a huge potential market where Europe has traditionally been neutral, a market you havent even launched 100% in the major countries, and meanwhile continue to pour money into Japan, a country where almost nobody wants a foreign console. 

 

and again. EMEA administration doesn't necessarily have any effect on european sales. as Sony and numerous other companies have showed. you don't need to spread your administration with localized headquarters all over the world. you just need localized support and distribution offices, heck even distribution you could probably cut and just have organized at main hq. 



#12 HawkMan

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Posted 19 July 2014 - 14:18

well, XBOX is the most money bleeding division on Microsoft empire.

 

that's not entirely correct. it's actually making money, however it's still in the red from the initial loss from starting the xbox division. 



#13 McKay

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Posted 19 July 2014 - 14:48

well, XBOX is the most money bleeding division on Microsoft empire.

 

No thats Bing.



#14 George P

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Posted 20 July 2014 - 14:57

Lots of these areas had gotten too big for their own good and only served to slow things down and bring forth misunderstandings and so on.  Sucks for those on the way out but that's what happens, the shots can just as easily be called from main Xbox HQ in Redmond (or wherever it is), they don't need a whole separate group in charge of Europe as well.  Too many managers is a key problem MS has had for a while now.

 

Besides, we're in a world where you can remote manage and oversee things all around the world without having to be there, a smaller group can and probably will, do a better job.



#15 Orange Battery

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Posted 20 July 2014 - 19:22

Seems to me that making staff reapply for their own job is the one way to make sure they never feel any loyalty to their employer again.

MS seem to signify a move to cut their loses with a reduction in Europe - it's a shame but don't expect any of us here go to any length in order to adapt. Competition will hopefully step in, as it has done in the past when MS takes its eyes off a market.