Microsoft has revealed plans to reduce its workforce by 650 employees within its Xbox unit, marking the third round of layoffs this year. The company’s decision aims to control expenses and facilitate the integration of its acquisition of Activision Blizzard for $69 billion. The gaming sector experienced a wave of lay-offs, studio closures, and project terminations in the initial months of the year, following a slowdown in consumer spending post the peak engagement levels witnessed during the pandemic.
According to a memo circulated by Xbox head Phil Spencer to employees on Thursday, the impacted roles primarily belong to corporate and support functions. Spencer assured that this adjustment will not lead to the cancellation of any games, devices, or experiences, nor will it result in the closure of any studios.
Microsoft’s acquisition of Activision Blizzard in the previous year significantly bolstered its presence in the gaming industry with popular titles like “Call of Duty,” enabling it to enhance competition against key rival Sony. In January, the company had announced plans to lay off 1,900 workers across Activision Blizzard and Xbox.
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