New Delhi: Microsoft has laid off 650 employees from its Xbox division as part of an ongoing restructuring, according to a report by Bloomberg on Thursday, September 12. This is the third round of job cuts this year, following Microsoft’s $69 billion purchase of Activision Blizzard Inc. The layoffs mainly affect corporate and support roles within Microsoft Gaming, as confirmed by Xbox CEO Phil Spencer in a memo to employees.
“We have decided to cut around 650 jobs, mostly in corporate and support functions, to help our business succeed in the long term,” Spencer said. He reassured that no games, devices, or studios would be canceled or shut down due to these changes.
Earlier this year, Microsoft laid off 1,900 employees, mostly from Activision units and studios. The company also shut down four studios it acquired through its $7.5 billion purchase of ZeniMax, although one of them was later sold. Xbox’s choice to release some of its games on competing consoles has upset some fans, leading them to question the brand’s commitment to exclusive content.
The gaming industry has had a tough year, with rising development costs and slow growth. Other big companies like Sony, Take-Two Interactive, and Electronic Arts have also laid off employees and canceled projects. Recently, Sony stopped supporting its multiplayer shooter “Concord” just two weeks after its release, showing little patience for underperforming games.
Microsoft completed its acquisition of Activision in October after a long legal battle over antitrust concern. While the deal brought in new talent and content for Xbox, the company now faces the challenge of making the merger work in the long run. Spencer added that the restructuring will help align resources to better support the company’s studios and ensure future growth.
