Microsoft has once again made headlines with significant job cuts in its gaming division, marking the second round of redundancies in less than a year. According to an internal memo obtained by IGN, approximately 650 employees will be affected by the latest round of layoffs, a move that follows the company’s acquisition of Activision Blizzard.
The memo, which was shared online by IGN, was penned by Xbox chief Phil Spencer. In it, Spencer explained the rationale behind the decision to let go of more than 650 staff members, primarily from corporate and supporting functions. As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming, the memo reads.
This latest round of layoffs comes just eight months after Microsoft cut 1,900 jobs in its gaming division, a move that followed the $68.7 billion acquisition of Activision Blizzard. The acquisition, which was finalized after overcoming various regulatory hurdles, including approval from the UK authorities, was aimed at bolstering Microsoft’s presence in the gaming industry.
The memo makes it clear that these cuts are not indicative of any broader issues with the company’s gaming projects. Spencer reassures employees and the gaming community that no games, devices, or experiences are being canceled, and no studios are being closed. This is a significant clarification, especially considering that following the previous round of layoffs, Microsoft closed several game studios, including Tango Gameworks and Arkane Austin.
The gaming industry has been a competitive and rapidly evolving space, and Microsoft’s acquisition of Activision Blizzard was seen as a strategic move to strengthen its position against competitors like Sony and Nintendo. However, integrating such a large acquisition can be challenging, and it appears that Microsoft is taking steps to streamline its operations and align its workforce with its long-term goals.
Despite the significant cuts, Microsoft’s gaming division remains a key focus for the company. The Xbox brand has been a cornerstone of Microsoft’s entertainment strategy, and the company continues to invest heavily in game development and acquisition. The acquisition of Activision Blizzard added a wealth of intellectual property and talent to Microsoft’s gaming stable, including popular franchises like Call of Duty, World of Warcraft, and Candy Crush.
Microsoft has not yet commented publicly on the latest round of layoffs, as TechCrunch’s request for comment went unanswered. However, the company’s silence on the matter does not diminish the impact of the redundancies on the employees affected. Layoffs are always challenging, and the gaming industry has seen its fair share of job cuts as companies adapt to changing market conditions and strategic priorities.
In other tech news, Yahoo has announced that as of November 1st, 2021, its suite of services will no longer be accessible from mainland China. This decision reflects the company’s strategic shift and the evolving landscape of internet services in the region. While Yahoo products and services remain unaffected in all other global locations, the move signals a significant change in the company’s approach to the Chinese market.
As Microsoft continues to navigate the gaming industry’s complex landscape, the latest round of layoffs underscores the company’s commitment to aligning its operations for long-term success. With the gaming sector showing no signs of slowing down, Microsoft’s strategic moves will be closely watched by industry observers and competitors alike.
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