Redmond, September 13: Microsoft has announced another round of layoffs in its Xbox division this year, cutting 650 jobs amid controlling costs. Microsoft has laid off over 1,900 employees from Xbox, Activision Blizzard, and Skylander Studio as of February 2024. The layoffs are announced as Microsoft starts integrating the USD 69 billion acquisition of Activision Blizzard.
Gaming layoffs this year have hit many companies due to restructuring, shutting down services, and poor performance by titles among players. According to a report in Fortune, Microsoft's layoffs have affected 2,550 employees since it acquired Activision Blizzard. PwC Layoffs in US: UK-Based Fintech Consulting Firm Lays Off 1,800 Employees Amid Restructuring, First Major Job Cuts Since 2009.
The latest round of job cuts has impacted people working in corporate and support roles. Microsoft Gaming CEO and Xbox Chief Phil Spencer informed the staff about the workforce reduction via memo and highlighted that the company would not shut down any studios during the process. Spencer also said that no games or game systems would be cancelled due to the Xbox layoffs.
Microsoft Gaming CEO Phil Spencer further added that the company was going through challenging days. He said that the team was able to put together themselves greatly during trying times and supported the company. Spencer also thanked the team's contribution.
The Microsoft-Xbox layoffs were announced due to the tech giant's slow sales of its gaming console in the latest quarter. Reports said that the company focused less on hardware and more on the GamePass game streaming service last year. In July 2024, the company raised the price for this service as it disclosed having around 34 million subscribers. Samsung Global Layoffs: Tech Giant To Reduce 30% of Its Overseas Workforce, Lay Off Around 1,000 Employees in India.
The tech layoffs or IT layoffs this year have worried several employees working in the industry. Tech giants like Dell, Intel, Google, Meta, and others have laid off thousands of people amid the focus on AI and restructuring their businesses. Dell recently announced that it will keep cutting more jobs to reduce costs in the future amid rising competition and slowed PC sales.
(The above story first appeared on LatestLY on Sep 13, 2024 01:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).