September 12, 2024: Redmond, WA, September 12, 2024 – Microsoft Corp. is set to lay off 650 employees within its Xbox division, according to a Bloomberg report. This decision marks the third round of job cuts for the tech giant in 2024 as it continues to streamline operations and integrate its recent $69 billion acquisition of Activision Blizzard Inc.
The roles being eliminated are predominantly within corporate and support functions, as detailed in a memo from Microsoft Gaming CEO Phil Spencer. The memo, sent to staff on Thursday, September 12, assured that the layoffs would not affect game titles, devices, or the closing of studios. “No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today,” Spencer stated in the memo.
Microsoft in January 2024 Eliminated 1.900 positions
This latest round of cuts follows significant reductions earlier this year. In January, Microsoft eliminated approximately 1,900 positions, with many of these roles linked to Activision Blizzard units and studios. Additionally, in May, the company shut down four studios acquired through its $7.5 billion purchase of ZeniMax.
The trend of job cuts is not unique to Microsoft but reflects broader challenges within the gaming industry. Major players such as Sony Group Corp., Take-Two Interactive Software Inc., and Electronic Arts Inc. have also recently downsized their workforce and canceled key projects. Notably, Sony canceled its high-profile multiplayer shooter “Concord” just two weeks after its release, highlighting a shift towards quicker decision-making in response to underperformance.
As the gaming industry grapples with these shifts, the focus remains on balancing cost management with strategic growth amid an evolving market landscape.
