Microsoft’s gaming division, which includes popular brands like Xbox and Minecraft, is set to undergo another round of job cuts. The tech giant announced that about 650 staff members will be affected, with layoffs primarily impacting corporate and supporting functions worldwide.
This news comes after Microsoft’s $69 billion merger deal, which saw the company lay off 1,900 employees in January and close four studios acquired before the purchase of Activision-Blizzard. Despite the layoffs, Xbox boss Phil Spencer assured employees that no games, devices, or experiences would be canceled, and no studios would be shut down as a result.
The decision to cut jobs, which represents about 3% of the gaming division’s workforce, is part of Microsoft’s efforts to align its post-acquisition team structure and position the business for long-term success. Spencer acknowledged that the news would be difficult for those affected but thanked them for their contributions to the company.
The gaming industry has seen a wave of layoffs in recent years, with companies like Sony, Riot Games, and Epic Games also making significant staff cuts. Microsoft’s gaming revenues have increased, largely due to its ownership of Activision-Blizzard, but hardware sales have declined, prompting the company to focus on expanding its software sales.
As the gaming division continues to evolve, Spencer emphasized the importance of running a sustainable business and meeting growth targets. With a high bar set within Microsoft for the gaming division, the company is working to navigate the changing landscape of the industry while maintaining its position as a key player in the market.
