Microsoft Reportedly Slashing 650 Jobs in Latest Round of Xbox Cuts
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Key Takeaways
- Microsoft reportedly will lay off 650 Xbox employees, according to a memo from division chief Phil Spencer seen by Bloomberg, the company’s third round of unit cuts since closing its $69 billion acquisition of Activision Blizzard last October.
- The cuts will affect “mostly corporate and supporting functions,” rather than game development.
- Microsoft previously laid off 1,900 Xbox employees in January and closed multiple Bethesda studios in May.
Microsoft (MSFT) reportedly is laying off 650 employees from its Xbox division, the company’s third round of unit cuts since closing its $69 billion acquisition of Activision Blizzard last October.
According to a memo from Xbox chief Phil Spencer, the affected employees are “mostly corporate and supporting functions,” rather than game development, per Bloomberg. “No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today,” Spencer added.
Microsoft did not immediately respond to an Investopedia request for comment.
Video Game Developers Struggle
Microsoft has significantly trimmed its Xbox division this year. In January, Microsoft said it was laying off 1,900 workers in its gaming sector, or about 9% of the unit. In May, Microsoft shuttered multiple Bethesda studios acquired along with its purchase of ZeniMax in 2021, as first reported by IGN.
The company is far from alone in the video game industry. Take-Two Interactive Software (TTWO), the company behind the “Grand Theft Auto” franchise, closed to of its subsidies in May, according to Bloomberg. Just this month, Sony (SONY) said it was removing first-person shooter “Concord” from Playstation 5 consoles and PCs just two weeks after the game underperformed.
Microsoft shares edged higher to $424.51 Thursday afternoon. They are up about 13% in 2024.
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