Microsoft has confirmed that more than 650 employees in its gaming division will be leaving the company. This move comes as part of a larger workforce reduction following the acquisition of Activision Blizzard in 2023, which has already resulted in a total of 2,550 job cuts. According to Xbox head Phil Spencer, these layoffs are aimed at restructuring the company for sustained success and will not impact studios or game development.
Microsoft lays off 650 workers from its gaming department.
Spencer assured that there will be no closures of games, devices, or studios due to the resignations. He emphasized the goal of reallocating resources for sustainable growth, aligning with the requirements of Microsoft Gaming studios and business units.
The layoffs are a result of restructuring following the acquisition of Activision Blizzard for $69 billion. Microsoft is reorganizing to align with its new objectives, but assures that important projects will continue as planned.
In 2024, a second round of layoffs occurred, with 1,900 employees affected, leading to the closure of Tango Gameworks and Arkane Austin studios, known for their games such as Hi-Fi Rush and Redfall.
Samsung, like other companies, is making job cuts globally. After laying off a significant number of employees in India, the leading smartphone company intends to decrease its global workforce by 30%.
