Microsoft cuts another 650 jobs from its gaming division in ongoing post-Activision Blizzard restructure

[Innovabble]

 

Microsoft has announced a substantial restructuring of its gaming division, resulting in the layoff of 650 employees. This decision, communicated by Phil Spencer, CEO of Microsoft Gaming, is part of a broader strategy to streamline operations following the company's landmark $69 billion acquisition of Activision Blizzard.

 

The restructuring impacts approximately 3% of Microsoft's global gaming workforce, primarily affecting corporate and support roles. Spencer emphasized that despite these changes, no games, devices, or studios would face cancellation or closure. The move is designed to optimize operations and facilitate the integration of newly acquired teams from Activision Blizzard.

This recent wave of layoffs follows a previous announcement in January, where Microsoft laid off 1,900 employees across Xbox, Activision Blizzard, and ZeniMax divisions. The total number of employees laid off from Microsoft's gaming division since the Activision Blizzard acquisition now stands at 2,550.

 

In his email memo to staff, Spencer expressed gratitude for the contributions of affected employees and outlined support measures, including severance packages, extended healthcare, and outplacement services for U.S. employees. Support packages for employees outside the U.S. will vary based on local regulations.

 

Despite these changes, Microsoft maintains its focus on sustainable future growth. The restructuring aims to better align corporate and supporting teams with the needs of studio teams and business units, potentially enhancing the company's ability to deliver high-quality gaming experiences.

 

The news has sparked varied reactions within the industry. While some view it as a necessary step for Microsoft to streamline operations, others express concern about employee morale and potential talent loss. These layoffs are part of a broader trend in the gaming industry, raising questions about the challenges of integrating large-scale acquisitions and diverse teams.

As Microsoft navigates this transition, the gaming community will be watching closely to see how these changes impact the company's future projects and its position in the competitive gaming market.

 

• https://www.forbes.com/sites/paultassi/2024/09/12/microsoft-is-laying-off-650-more-xbox-employees-again-due-to-the-activision-blizzard-deal/
• https://www.ign.com/articles/microsoft-lays-off-another-650-staff-from-its-video-game-workforce-xbox-boss-phil-spencer-sends-memo-to-staff
• https://variety.com/2024/gaming/news/microsoft-gaming-layoffs-650-employees-1236141947/

 

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