Microsoft is laying off employees for the second time after acquiring video game publisher Activision Blizzard
Tech layoffs at Microsoft: Over 650 employees from Microsoft’s gaming division were laid off on Thursday, September 12. The job cuts were announced by Xbox chief Phil Spencer in an internal memo, according to a report by The Verge.
“After acquiring the team, we have decided to restructure and streamline our business. As a result, we will be reducing around 650 positions in Microsoft Gaming, primarily in corporate and support roles. This action is aimed at setting up our business for long-term success,” Spencer stated.
However, he has reportedly clarified that the layoffs will not result in any cancellations of games, devices, or experiences.
The most recent wave of job cuts is connected to Microsoft’s major acquisition deal with Activision Blizzard, the company responsible for popular video games such as Call of Duty, World of Warcraft, and Candy Crush Saga.
After months of negotiations with regulators in the UK and US, the Xbox maker finalized the $68.7 billion deal to acquire Activision Blizzard in October of last year.
At the beginning of 2024, Microsoft laid off more than 1,900 employees, reducing its 22,000-strong gaming unit by 8%. It recently closed down several video game studios, including Redfall developer Arkane Austin.
