Microsoft has announced a new cut of 650 jobs in its gaming sector, as communicated in an email by the head of the division, Phil Spencerto employees. These cuts are part of a reorganization process following the acquisition by 69 billion dollars by Activision Blizzard in October 2023.
The eliminated roles will mainly concern the business and support functions within Microsoft Gaming and, according to close sources, will be concentrated mainly in Activision Blizzard. Spencer explained that the decision was made to ensure the long-term success of the division, stressing that the creative and development teams will not be affected by these cuts and that no game, device or experience projects will be deleted.
This is the second significant wave of layoffs in 2024 for Microsoft in the gaming sector, which had already seen 1,900 cuts in January, including project cancellations at Blizzard. However, Spencer reiterated the company’s commitment to a sustainable growthstating the need to have the “right number of people in the right places” to achieve business goals.
Staff reductions are nothing new in the video game industry, which has seen explosive growth during the pandemic, but also subsequent significant cuts by other industry giants such as Sony And RiotGames. Microsoft, with its growth forecasts of 30-40% Thanks to the contributions of Activision Blizzard, it aims to strengthen its position on the market, focusing on major releases such as the next “Call of Duty: Black Ops 6”.
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