Microsoft is cutting 650 support jobs in Xbox Games units, making this the second big round of layoffs at the Xbox.
Microsoft recently shared that it will be cutting 650 jobs in its Xbox gaming division. This is part of a plan to reshape its business after buying Activision Blizzard, a huge name in gaming known for popular titles like “Call of Duty.”
This marks the third round of layoffs in the gaming division since Microsoft bought Activision for $69 billion last year. And according to Microsoft Gaming CEO, Phil Spencer, these job cuts are mainly affecting corporate and support roles, not the teams working on making new games.
In a message to employees, Spencer explained that these changes are being made to help the company work better after the big buyout and to set things up for future success. He stressed that, while 650 jobs are being cut, no new games are being canceled, and no gaming studios are being closed. The layoffs, he assured, are part of a plan to make the gaming division more efficient and sustainable in the long run.
This isn’t the first time Microsoft has had to cut jobs in its gaming unit this year. Back in January, 1,900 employees were laid off, and some gaming studios like Arkane Austin and Tango Gameworks were closed down in May. Interestingly, Tango Gameworks has since been brought back by another gaming company, Krafton.
These job cuts are happening as Microsoft tries to keep its costs in check after the massive Activision deal, which has added some pressure on the Xbox division to show more profit. Microsoft is working hard to become a bigger name in the gaming world, and buying companies like Activision and Bethesda is all part of that plan. These buyouts have given Microsoft access to many popular games, which helps them compete with big players like Sony. But now, Microsoft needs to make sure the huge amount of money they spent will pay off in the future, which is why they’re trying to cut costs and reorganize their teams.
Phil Spencer, in his message, also mentioned that Microsoft is providing support to those who are losing their jobs, especially in the U.S., with severance pay, healthcare extensions, and job placement help. For employees outside the U.S., the support will depend on the country they’re in. He admitted this was a tough call but believes it is necessary to make Xbox a stronger part of Microsoft’s overall business.
It’s not just Microsoft going through job cuts these days; the whole gaming industry is feeling the pinch. Big names like Sony, Unity, Twitch, and Discord have also let go of thousands of workers in the past couple of years. With fewer people spending money on games, companies like Microsoft are trying to find ways to save money wherever they can.
So, in the end, Microsoft’s decision to cut 650 jobs from its Xbox division is all about trying to make their gaming business more profitable, especially after spending a lot of money buying Activision Blizzard.
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