They Made a Record $69 Billion Acquisition, Now They’re Laying Off Hundreds of Workers
Microsoft is laying off 650 people from its Xbox division following its $69 billion acquisition of Activision Blizzard. The cuts are mostly in corporate roles and are part of a larger restructuring.
Microsoft has made significant cuts to its Xbox division, laying off 650 employees, CNBC reported. The layoffs are part of a larger restructuring that follows Microsoft’s acquisition of gaming giant Activision Blizzard for a whopping $69 billion.
Layoffs at Microsoft
Phil Spencer, Microsoft’s gaming chief, explained in an internal memo to employees that the cuts are necessary to align corporate structures after the Activision Blizzard deal closes. The cuts will primarily affect corporate and support positions, with the goal of improving team efficiency.
Microsoft employees who are being laid off can count on support in the form of farewell packages that include severance pay and benefits. In the United States, there are also plans for expanded health care and access to outplacement services to help employees find new jobs. In other countries, these packages will vary depending on local laws and practices.
Phil Spencer also emphasized that the restructuring will not only affect the Xbox division, but also other teams in the company will have to adapt to new priorities and effectively manage the lifecycle and performance of games.
A wave of layoffs in the gaming industry
Microsoft isn’t the only company in the industry to make significant job cuts. Since the beginning of 2023, many leading gaming companies have made the decision to eliminate thousands of positions worldwide. In February 2024, Sony announced the layoff of 900 employees from its PlayStation division, showing that the trend of job cuts in the gaming industry has continued for a second year.
