Microsoft closes Austin-based Arkane Studios; 96 laid off amid wave of tech downsizing
A WARN notice filed this week details layoffs from Austin-based gaming company Arkane Studios where 96 employees no longer have jobs.
The company, which is owned by tech and gaming giant Microsoft, is just one of many companies under Microsoft’s umbrella that are seeing layoffs.
Arkane is now on a growing list of a diverse set of tech companies seeing mass layoffs in the Austin area. From dating app darling Bumble to electric vehicle leader Tesla, the tech industry — which has flocked to Austin in recent years — seems to be in flux.
What is Arkane Studios?
Arkane set up shop in Austin almost two decades ago in 2006. The game maker was most known for its vampire-themed first-person shooter game Redfall. While the game left a sour taste with critics, it did gain a following of sorts.
The company announced the closure of its Austin studio on X, formerly Twitter, and in a statement said: “To everyone that has supported the work from our Austin studio over the years, thank you. Thank you for spending time in our worlds and making them your own.”
Other Microsoft studios reportedly closing in this wave include Tango Gameworks, Alpha Dog Games and Roundhouse Studios, which is set to merge under ZeniMax Online Studios.
IGN reported that Microsoft made the cuts because of a “reprioritization of titles and resources.” This meant that higher-grossing games were going to see more investment and middling ones, like Redfall, would be nixed.
Layoffs in tech industry continue
The layoffs at Arkane and Microsoft echo what other tech companies are implementing. This year alone, Google announced layoffs that could affect Austin, Unity announced it would be cutting 100 jobs in Austin, VMware announced it would be slashing 577 jobs in Austin, and, most recently, Expedia announced it would be laying off dozens of employees in Central Texas.
Accenture has also announced layoffs affecting hundreds of workers in recent WARN notices, and, in November, Cedar Park-based Hyliion cut 150 people, or two-thirds of its staff, as it pivoted its focus to generators.
In March, it was announced that more than 150 employees of Austin’s Rooster Teeth would be out of a job after Warner Bros. Discovery decided the tech media company, opened 21 years ago, would be closing its doors for good. This is only adding to the layoffs of tech and tech-adjacent companies in the Austin area as anxiety continues to loom in the space.
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.