Bloomberg: Microsoft Cuts 650 Video Game Developers
Microsoft Corporation has laid off 650 employees of its video game development divisions, citing a letter from division head Phil Spencer. reports Bloomberg.
The layoffs will primarily affect employees in “corporate and support positions.” The company promised not to close studios that create games and not to stop developing games, gadgets, and other products.
Most of the 650 laid-off employees are at Activision Blizzard, which Microsoft bought last year for $68.7 billion. At the beginning of the year in January, the corporation had already laid off 1.9 thousand people. According to the WSJ, since the beginning of the year, video game developers have laid off 11.5 thousand employees. This trend has emerged as companies actively hired personnel during the pandemic, after which they began to cut costs.
American Intel has also planned mass layoffs to cut costs. Amid falling share prices, one of the largest chip makers has planned to lay off 15,000 people. Contrary to analysts’ forecasts, instead of a profit of 30 cents per share, the company’s loss per share will be 3 cents. Amid the negative news, the company lost more than 19 percent of its value and announced plans to cut its workforce by 15 percent.
In July, the American technology corporation Google fired nine employees who staged a sit-in strike. Management said they would be placed on administrative leave and their building passes would be blocked. After refusing to leave the office, the Google employees were arrested and then fired from the company.
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