Microsoft Fires 1,900 Employees in Its Gaming Division
According to some recent pieces of information, Microsoft laid off around 1,900 employees from its gaming division. This choice, however difficult, must be made in light of the pervasive trend of layoffs and restructurings in the gaming business.
Following Microsoft’s $69 billion acquisition of Activision Blizzard, there will be layoffs
The information about the layoffs was shared by Phil Spencer, the head of Xbox. He detailed that the company would offer severance benefits to the impacted employees. The decision about the layoffs is followed by the $69 billion acquisition of Activision Blizzard. With this step, games like Call of Duty now lie under Microsoft’s wing. Notably, it is the biggest acquisition in the gaming industry.
It requires a review of the cost structure and strategic alignment in order to support the growing business. According to Spencer, the recent integration of Activision, Blizzard, and King teams into Microsoft requires a reevaluation of priorities and the removal of areas that overlap. Although the decision to make layoffs is tough, it is a strategic move toward growth.
Besides this, the company recently featured several new and exciting games. It is an indication of the company’s effort to provide high-quality gaming experiences. The future of Xbox is quite bright, with titles like MachineGames’ Indiana Jones and Obsidian’s Avowed. The concerning pattern of job cuts in the gaming business serves as a larger context for these layoffs. Thousands of people were laid off in the industry in just the previous year, and this trend is expected to continue until 2024. This is indicative of a wider industry change as businesses review their approaches in a market that is changing quickly.
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