A warning notice filed May 7 details layoffs from Austin-based gaming company Arkane Studios, where 96 employees lost their jobs.
The company is owned by tech gaming giant Microsoft, but it is just one of many Microsoft companies that are cutting jobs.
Arkane now joins a comprehensive list of tech companies in the Austin area that are expected to experience mass layoffs. From dating app darling Bumble to EV leader Tesla, the tech industry that's flocked to Austin in recent years seems to be in flux.
What is Alkan Studio?
Arkane set up shop in Austin nearly 20 years ago in 2006. The game maker was best known for the vampire-themed first-person shooter Redfall. The game left a bad taste in the mouths of critics, but gained some traction.
company Announcing Austin Studio Closure at Xformerly on Twitter, said in a statement, “Thank you to everyone who has supported Austin Studio's work over the years. Thank you for taking the time to explore our world and making it your own. .”
Other Microsoft studios reportedly closing in this wave include Tango Gameworks, Alpha Dog Games, and Roundhouse Studios, which will be folded under ZeniMax Online Studios.
IGN reported that Microsoft made the cuts due to “reprioritization of titles and resources.” This meant that higher-returning games would receive more investment, while middling games like Redfall would be discontinued.
Layoffs continue in the technology industry
The layoffs at Arkane and Microsoft are similar to what other technology companies are currently doing. This year alone, Google announced layoffs that could impact Austin, Unity announced it would cut 100 jobs in Austin, VMware announced it would cut 577 jobs in Austin, and most recently Expedia announced it would lay off dozens of employees in Austin. Central Texas.
Accenture also announced layoffs affecting hundreds of employees in a recent warning notice, and in November, Cedar Park-based Hyliion laid off a third of its workforce to focus on its power generation business. The number of employees was reduced by 150 people, or 2.
In March, it was announced that more than 150 employees at Rooster Teeth in Austin would lose their jobs after the high-tech media company founded 21 years ago by Warner Bros. Discovery decided to permanently close its doors. As anxiety continues to hang over the Austin area, this will only spur layoffs at Austin-area tech and high-tech companies.
Beck Andrew Salgado covers trending topics in Austin's business ecosystem for America's Statesman. To share additional tips and insights with Salgado, email Bsalgado@gannett.com.
