Microsoft Announces 650 Layoffs at Xbox Unit in Bid to Cut Costs After Activision Acquisition
Microsoft said it is cutting 650 jobs in its Xbox unit, the third such layoff this year as the company tries to rein in costs and integrate its $69 billion (roughly Rs. 5,79,115 crore) acquisition of Activision Blizzard, Bloomberg News reported on Thursday.
The gaming industry saw mass layoffs, studio shutdowns and project cancellations in the first half of the year, triggered by a slow recovery in spending by gamers after player engagement rates peaked during the pandemic.
The job cuts will affect mostly corporate and supporting functions, the report said, citing a memo sent to staff by Xbox chief Phil Spencer.
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 had closed its deal for Activision Blizzard last year, which boosted its heft in the video-gaming market with best-selling titles, including Call of Duty, to better compete with industry leader Sony.
The technology giant had said in January it would let go of 1,900 employees at Activision Blizzard and Xbox.
In May, Xbox shut down a number of gaming studios, including Arkane Austin.
Research firm Newzoo dialed back its annual growth forecast for the global videogame market last month, as console sales underperform amid a relatively light release schedule of games this year.
© Thomson Reuters 2024
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