Microsoft is once again cutting jobs in its gaming division, announcing 650 layoffs in its Xbox unit, marking the latest in a series of industry-wide cuts. This move comes after Microsoft’s $69 billion acquisition of Activision Blizzard, the publisher behind major franchises like *Call of Duty*.
According to a memo from Phil Spencer, CEO of Microsoft Gaming, the decision to eliminate these roles is part of aligning the company’s structure post-acquisition and setting up the business for long-term success. Spencer acknowledged the difficulty of the move, expressing gratitude for the contributions of affected employees and outlining support measures like severance packages and outplacement services.
These layoffs primarily impact corporate and support teams, but Spencer assured employees that no gaming studios, devices, or experiences would be affected. The cuts follow a broader cost-saving effort by Microsoft as it aims to ensure the sustainability of its significant gaming investments, including the Activision acquisition and its earlier $7.5 billion purchase of ZeniMax Media, the company behind Bethesda Softworks.
The job cuts at Microsoft reflect a broader trend across the gaming industry. Major players like Sony, Unity, Twitch, and Playtika have all announced layoffs in recent months as they navigate a challenging economic landscape.
Despite these reductions, Microsoft remains committed to its gaming strategy, with Spencer emphasizing that the reorganization will better position Xbox for future growth and stability. With these changes, the company aims to continue delivering high-quality gaming experiences while ensuring that its business can thrive in a rapidly evolving industry.
