Microsoft’s Gaming Division Faces More Layoffs
Microsoft has announced another round of job cuts within its gaming division, affecting approximately 650 employees. This decision comes less than a year after the company acquired Activision Blizzard and is part of its ongoing efforts to restructure its gaming operations.
The Latest Round of Layoffs
The layoffs primarily impact corporate and support roles, as confirmed by Xbox chief Phil Spencer in a memo to employees. Despite these cuts, Spencer assured staff that no games, devices, or studios would be canceled or closed. Instead, the focus is on reorganizing the business to ensure long-term success and better support its game studios and business units.
The Impact on Xbox Business
While other parts of Microsoft’s Xbox business, such as hardware sales, have faced challenges, the overall gaming division has seen growth, largely thanks to the acquisition of Activision Blizzard. Microsoft has even taken the strategic move of releasing exclusive games on rival platforms like PlayStation to generate additional revenue. The company is also gearing up for several new releases, including Call of Duty: Black Ops 6 and new Xbox consoles, which are expected to further strengthen its position in the gaming market.
Restructuring Efforts Following the Activision Blizzard Acquisition
Since acquiring Activision Blizzard for $69 billion in 2023, Microsoft has been making significant adjustments to its gaming teams. The latest job cuts follow an earlier round this year when 1,900 employees were let go. In total, 2,550 jobs have been cut from Microsoft’s gaming division since the acquisition.
The Future of Microsoft Gaming
Microsoft’s gaming business continues to evolve with a focus on making games available across consoles, PCs, and cloud platforms. While these layoffs are undoubtedly challenging, Spencer believes they are necessary for ensuring future growth and success.
FAQs
Why is Microsoft laying off employees in its gaming division?
Microsoft is restructuring its gaming business following the acquisition of Activision Blizzard.
How many jobs have been cut in Microsoft’s gaming division since the acquisition?
2,550 jobs have been cut.
Will any games, devices, or studios be canceled or closed due to these layoffs?
No, according to Phil Spencer.
What is the focus of these restructuring efforts?
The focus is on reorganizing the business to ensure long-term success and better support game studios and business units.
How is Microsoft’s overall gaming business performing?
Despite challenges in certain areas, the overall gaming division has seen growth, largely thanks to the acquisition of Activision Blizzard.
