Microsoft, the tech giant behind Xbox, has announced a new round of job cuts within its gaming division. This latest reduction in workforce follows the company’s $69 billion acquisition of Activision-Blizzard.
The layoffs will affect approximately 650 employees worldwide, primarily in corporate and supporting roles. This announcement comes just months after Microsoft laid off 1,900 employees in January and closed four studios acquired before the Activision-Blizzard deal.
In a memo to employees, Xbox boss Phil Spencer clarified that the layoffs would not impact any games, devices, or studios. However, he acknowledged that some teams may experience changes as they adapt to shifting priorities and manage the lifecycle of games.
The gaming industry has been grappling with mass layoffs in recent years, following a period of significant growth and acquisitions during the COVID-19 pandemic. Other major players like Sony, Riot Games, and Epic Games have also implemented job cuts.
Microsoft’s decision to close critically acclaimed studios like Arkane Austin and Tango Gameworks earlier this year drew criticism from fans and industry observers. Despite the layoffs, Xbox boss Phil Spencer has expressed his commitment to running a sustainable and growing gaming business.
While Microsoft’s gaming revenues have increased due to the Activision-Blizzard acquisition, Xbox hardware sales have declined. The company has been focusing on expanding its software sales and has showcased a number of upcoming games from its studios.
Microsoft has faced backlash from fans for recent decisions such as raising the prices of its Game Pass service and announcing plans to release certain exclusive games on rival consoles.
The latest round of layoffs at Microsoft’s Xbox division highlights the ongoing challenges facing the gaming industry. As the company continues to integrate Activision-Blizzard and navigate the evolving landscape, it remains to be seen how these changes will impact its future.
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