Key Takeaways
- Microsoft has announced that 650 employees are being laid off from its gaming teams.
- The company issued layoffs to around 1,900 staff members in January.
- Phil Spencer claims that no games or devices will be canceled as a result of the job cuts.
As a dedicated gamer and tech enthusiast with over two decades of immersion in the gaming industry, I find myself deeply concerned about the recent wave of layoffs at Microsoft’s gaming division. With my first gaming console being an Xbox, I’ve witnessed the evolution of this company from its humble beginnings to becoming a titan in the gaming world.
It was recently disclosed that Microsoft has implemented another round of job cuts, specifically targeting its Xbox gaming sector, which has resulted in approximately 650 individuals being terminated. Over the last few years, there has been a noticeable increase in layoffs within the video game industry, with companies such as Microsoft, Sega, and EA reducing their workforces during 2024. Even smaller developers have not escaped this trend, as studios like Deck Nine (responsible for Life is Strange: True Colors) and CI Games (creators of Lords of the Fallen) announced layoffs at the start of the year.
Due to the acquisition of Activision Blizzard last year, Microsoft has grown into one of the world’s largest gaming companies. However, in January, the company had to let go of some of its internal developers, affecting around 1,900 employees. The layoffs primarily targeted studios that were part of the acquisition, such as many members of Blizzard’s customer service team, the developers of Skylanders and Crash Bandicoot 4: It’s About Time (Toys for Bob), and the Call of Duty support studio Sledgehammer Games. Additionally, the layoffs extended to ZeniMax Media, the parent company of Bethesda Softworks, which was acquired by Microsoft in 2021.
It appears that the layoffs at Microsoft’s gaming division are not ending soon, as approximately 650 employees have been informed they are being let go according to an email sent by Xbox executive Phil Spencer. While some positions within Activision Blizzard may be affected, it has been reported that no projects will be impacted and no business unit leaders at Xbox or its affiliated studios are being terminated. This information is based on reports from sources such as Game File.
Microsoft is Laying Off Nearly 650 Workers at Its Gaming Division
In an email announcement, Phil Spencer revealed that the recent job cuts at Microsoft are related to corporate reorganization following their $69 billion acquisition of Activision Blizzard. This deal grants them control over popular franchises such as Call of Duty, World of Warcraft, and Diablo. The FTC has also taken notice due to these recent expansions, which may have contributed to the 1,900 layoffs that occurred in January.
This summer, experts within the industry had forecasted Microsoft would be letting go of additional staff members in their Xbox gaming sector, and indeed, they have followed through with these cuts. As of now, it remains uncertain if Microsoft will announce further layoffs; however, this recent round is indicative of an ongoing pattern that shows no signs of abating.
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2024-09-12 18:53