Massive layoff reports â??are wildly inaccurateâ??

Massive layoff reports â??are wildly inaccurateâ??

By Rob Crossley

May 7th 2009 at 10:36AM

Company spokesperson rebuffs news of a 75% workforce reduction, confirms full-time workforce has been cut by 28%

Reports of job cuts taking place at Microsoft’s in-game ad firm Massive Inc are “wildly inaccurate”, according to a company spokesperson.

On Wednesday news emerged that Microsoft’s sustained cost-cutting measures had resulted in a 75 per cent workforce reduction at its in-game advertising firm Massive.

Speaking to Develop, a company spokesperson has denied the extent of the layoff measures.

“While yesterday’s job eliminations included full-time employees who work for Massive, the reports of a 75 percent workforce reduction are wildly inaccurate,” he said.

“In total, the business unit will see a headcount reduction of 28 per cent of full-time employees.”

It was previously believed that Massive Inc would lose some 100 workers, which was thought to represent three-quarters of the studio. Develop is now contacting the spokesperson for total head count numbers before and after the layoffs, and is asking whether or not any part-time employees were affected by the cuts.

The spokesperson added that the staff cuts were “in response to general benchmarks and growth trends” in the in-game advertising sector, and claims the smaller workforce will allow the group to “operate more efficiently in the future”.

“We remain committed to growing the business,” he added. “We foresee no disruption whatsoever to our current relationships with global, blue chip brands and leading game publishers.”