12/09/2024 – 15:11
Microsoft Corp. has laid off about 650 employees in its video game business, as it seeks to cut costs following its $75 billion acquisition of Activision Blizzard last year. The layoffs at Microsoft’s gaming business are part of a broader cost-cutting drive across the global video game industry.
The layoffs are being made to “set up our company for long-term success,” Phil Spencer, Microsoft Gaming’s chief executive, said in a company email reviewed by The Wall Street Journal.
No studios will be closed, nor will any games, devices or experiences be canceled, he said.
The move also comes as Microsoft is investing heavily in artificial intelligence, including more than $13 billion in investments for OpenAI.
The tech giant said it spent $19 billion on capital expenditures and equipment in the three months ending in June. That’s about the same amount the company spent in the entire year of 2019. Source: Dow Jones Newswires
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