Microsoft cuts 650 jobs in latest round of Xbox division layoffs
Microsoft has announced it is cutting 650 jobs at its Xbox division, the third layoff this year, as the company tries to control costs and integrate its $69 billion (approximately Rs 5,791,115 crore) acquisition of Activision Blizzard, Bloomberg News reported Thursday.
The gaming industry struggled with mass layoffs, studio closures and project cancellations in the first half of the year as gamer spending slowly recovered after player engagement peaked during the pandemic.
The report said the layoffs will primarily affect corporate and support functions, citing a memo Xbox CEO Phil Spencer sent to employees.
No games, devices or experiences are being canceled, and no studios are being closed as part of these adjustments, the report said, citing the memo.
Microsoft and Xbox did not immediately respond to Reuters’ requests for comment.
Microsoft already struck a deal with Activision Blizzard last year, giving the company a bigger foothold in the video game market with bestsellers like Call of Duty. This allowed the company to better compete with market leader Sony.
The tech giant announced in January that it would lay off 1,900 employees at Activision Blizzard and Xbox.
In May, Xbox closed several game studios, including Arkane Austin.
Research firm Newzoo last month cut its annual growth forecast for the global video game market, as console sales disappoint while relatively few games are being released this year.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
