Microsoft Xbox layoffs: 650 Employees cut amid restructuring Post-Activision acquisition

Microsoft has announced 650 job cuts in its Xbox division, following its acquisition of Activision Blizzard. The layoffs aim to streamline operations without affecting gaming projects or studios.

Microsoft has announced the dismissal of 650 employees from its Xbox division. This is the third round of layoffs since the company’s $69 billion acquisition of Activision Blizzard.

The move is part of Microsoft’s efforts to streamline operations and align resources more efficiently. The job cuts will primarily affect corporate and support roles in the Xbox division.

Phil Spencer, CEO of Microsoft Gaming, sent a memo to staff addressing the layoffs. He acknowledged the difficulty of the decision but emphasised that no gaming projects, studios, or devices would face cancellations. The layoffs are aimed at driving long-term success within the gaming business.

Employees in the United States will receive severance packages, healthcare extensions, and outplacement services. Staff in other countries will be supported according to local labour laws. The restructuring comes as part of Microsoft’s strategy to adapt to recent challenges in the gaming sector, which has faced a downturn in player spending post-pandemic.

Earlier this year, Microsoft laid off 1,900 employees, and in May, several gaming studios, including Arkane Austin and Tango Gameworks, were closed.

The global gaming industry has faced widespread job cuts, with companies like Sony and Unity also announcing significant layoffs. The slowdown in console sales and a lack of major game releases have led to reduced growth forecasts in the gaming sector.