Microsoft’s Gaming Division Faces Major Cuts
In a significant shake-up, Microsoft has announced the layoff of approximately 650 employees from its gaming division. This decision follows the company’s recent $69 billion acquisition of Activision-Blizzard, which has already seen substantial restructuring within its gaming teams. Xbox chief Phil Spencer emphasized that no games or studios would be canceled due to these layoffs, aiming to reassure both employees and fans amid the changes.
This round of job cuts comes on the heels of earlier layoffs, where Microsoft let go of 1,900 staff in January and closed four studios previously acquired. The affected roles predominantly involve corporate and support functions, as Microsoft aligns its post-acquisition structure for long-term success. Spencer acknowledged the difficulty of this news for the employees, expressing gratitude for their contributions.
The gaming industry as a whole has been grappling with job reductions, a trend that has affected major players like Sony and Epic Games as well. Despite these cuts, Microsoft’s gaming revenues have increased, largely due to its acquisition of Activision-Blizzard.
As Microsoft continues to navigate this transitional phase, the company's focus remains on expanding its software sales and maintaining a sustainable gaming business model. The future of Microsoft’s gaming division will be closely watched as it strives to balance growth with operational efficiency.
