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Microsoft: Massive Layoffs Only 28 Percent, Still 'Committed To Growing The Business'

Microsoft: Massive Layoffs Only 28 Percent, Still 'Committed To Growing The Business' Exclusive

May 7, 2009 | By Leigh Alexander

Previous reports of a 75 percent headcount reduction at Microsoft-owned in-game ad firm Massive are "wildly inaccurate," says a representative.

"In total, the business unit will see a headcount reduction of 28 percent," a rep tells Gamasutra. "We have made these adjustments in response to general benchmarks and growth trends in the in-game advertising industry."

"They will allow us operate more efficiently in the future, and we remain committed to growing the business. We foresee no disruption whatsoever to our current relationships with global, blue chip brands and leading game publishers."

Microsoft is currently in the process of implementing a cost-cutting plan across all of its businesses.

In January, the company said it would cut a total 5,000 jobs, or five percent of its total workforce, over the coming 18-month period "in the areas of R&D, marketing, sales, finance, [legal], HR, and IT" in order to reduce costs.

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