Microsoft announced plans to eliminate 650 positions within its Xbox division, marking the third round of layoffs this year amid ongoing efforts to cut costs and merge its recent $69 billion acquisition of Activision Blizzard, according to Bloomberg News.
The gaming sector has faced significant layoffs, studio closures, and project cancellations over the first half of the year, largely due to a sluggish rebound in consumer spending following a peak in player engagement during the pandemic.
The job reductions will primarily target corporate and support roles, as outlined in a memo from Xbox chief Phil Spencer, as reported by Bloomberg.
Importantly, no game titles, devices, or gaming experiences are being terminated, nor are any studios being closed due to these changes, the memo indicated.
Neither Microsoft nor Xbox provided immediate comments in response to requests from Reuters.
Last year, Microsoft completed its acquisition of Activision Blizzard, which significantly enhanced its standing in the gaming industry through popular franchises like Call of Duty, enabling it to better compete against market leader Sony.
Earlier this year, Microsoft announced it would reduce its workforce by 1,900 employees across Activision Blizzard and Xbox.
In May, Xbox made headlines by shutting down several gaming studios, including Arkane Austin.
Additionally, research firm Newzoo revised its annual growth expectations for the global video game market last month, pointing to underwhelming console sales amid a relatively sparse release schedule for new titles this year.
© Thomson Reuters 2024
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