Who is Impacted by the recent Microsoft layoffs?

Microsoft continues to undergo significant changes, particularly in its gaming unit. Approximately 1,900 employees, or 9% of the gaming division face layoffs. This decision aligns with Microsoft’s strategy following its major acquisition of Activision Blizzard.

The Microsoft layoffs include high-profile exits, including former Blizzard President Mike Ybarra. Microsoft Gaming CEO Phil Spencer has described these layoffs as part of an execution plan to reduce overlaps.

Allen Adham, Blizzard’s co-founder and design chief, also leaves the company. Alongside his departure, Blizzard, under Microsoft’s gaming division led by Matt Booty, will halt the development of a new survival game.  A Microsoft spokesperson confirmed authenticity of the information revealed in Booty’s memo.

What is the impact to Microsoft?

Despite the layoffs, Microsoft’s stock remained largely unaffected. This reflects a broader trend of efficiency and growth focus in the tech industry amidst economic pressures. This move comes at a time when tech companies worldwide are making deep cuts in their workforce, signaling a shift in the sector’s dynamics. Already in 2024 Google, TikTok and other tech companies have laid off hundreds of people.

Severance pay for Canadian Microsoft employees

In Canada, Microsoft employees not part of a union are entitled to receive their full severance pay in the event of job loss due to downsizing or corporate restructuring. Various factor can impact a severance package, potentially spanning up to 24 months of pay. In case of mass layoffs of 50 people or more in Ontario, employees may be entitled to a greater severance package. Those not receiving their complete severance amount have the right to pursue compensation. We advise seeking legal counsel to ensure individuals facing Microsoft layoffs receive their entitled compensation.

At Whitten & Lublin, we understand the challenges associated with job loss or termination, recognizing it as a stressful experience. Our team of experienced employment lawyers will guide you through the available legal avenues. This ensures you receive the rightful compensation owed to you. We encourage those affected by recent layoffs in Canada to reach out to us for a consultation, accessible through our online portal or by phone at (647) 951-7460 today.