Microsoft Layoffs: 650 Jobs Cut in Xbox Unit Amid Major Activision Blizzard Acquisition

Thursday, 12 September 2024, 23:28

Microsoft layoffs impact 650 jobs within the Xbox unit, after the Activision Blizzard acquisition. The gaming industry faces challenges amid a slow recovery in spending.
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Microsoft Layoffs: 650 Jobs Cut in Xbox Unit Amid Major Activision Blizzard Acquisition

Microsoft Layoffs and Xbox Unit Job Cuts

Microsoft announced a significant round of layoffs affecting 650 jobs in its Xbox unit, marking the third major workforce reduction this year. This move comes as the company strives to manage costs while integrating its recent $69 billion acquisition of Activision Blizzard. These layoffs primarily target corporate and support functions, as outlined in an internal memo by Xbox chief Phil Spencer.

Challenges in the Gaming Industry

The gaming sector has seen widespread layoffs, studio closures, and project cancellations, largely attributed to a sluggish recovery in gaming expenditures following peak engagement rates during the pandemic. Despite these job cuts, Microsoft assures that no games, devices, or studios are being eliminated.

  • Phil Spencer emphasized the need for these adjustments in light of industry trends.
  • Microsoft's acquisition of Activision Blizzard has enhanced its capability to compete with Sony in the market.

Looking Ahead

While challenges abound, the focus remains on maintaining the integrity of gaming offerings and ensuring a resilient studio environment.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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