In a major blow to Sledgehammer Games, the developer has been severely impacted by the recent Microsoft layoffs. Following the termination of nearly 1,900 Activision Blizzard employees by Microsoft, Sledgehammer Games has lost approximately 30 percent of its workforce. As a result, the company will be closing its main office and transitioning to remote work until a new location is secured.
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The news of the layoffs initially left the impact on Sledgehammer Games unclear. However, it has now been confirmed that the developer has suffered significant losses, with 30 percent of its total staff being let go. Additionally, the closure of the main offices has been confirmed by InsiderGaming.
As a temporary solution, the MW3 developers will be working from home, with this arrangement expected to continue until the end of 2024. The decision was made during a company town hall meeting, and the team will be actively searching for a suitable space near their current location.
InsiderGaming’s sources have revealed that some employees view this decision as a “slap in the face.” This situation is in stark contrast to Activision’s call in December 2023 for QA workers to return to the office full-time. The ABK Workers Alliance criticized Activision at the time, claiming that employees with valid medical reasons for not being able to work in the office were ignored, even when providing proper documentation.
However, the impact of the Microsoft layoffs on Sledgehammer Games goes beyond the loss of staff. The studio has also been caught up in the storm, with certain teams, particularly the QA department, reportedly facing cuts. According to Jez Corden, the managing editor of WindowsCentral, Microsoft plans to outsource QA abroad and retain only essential positions domestically.
Overall, the Microsoft layoffs have resulted in approximately eight to nine percent of Activision employees leaving the company. This setback poses significant challenges for Sledgehammer Games as they navigate through this difficult period.
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