Microsoft lays off 650 employees from Xbox games unit in restructuring bid

Microsoft layoffs: This is the second round of job cuts following the tech giant's acquisition of video game publisher Activision Blizzard.

Microsoft layoffs: 650 more job cuts from Xbox games unit. (File photo)

Tech layoffs, Microsoft: Over 650 employees from Microsoft’s gaming division were laid off on Thursday, September 12. The job cuts were announced by Xbox chief Phil Spencer in an internal memo, according to a report by The Verge.

“As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming – mostly corporate and supporting functions – to organize our business for long term success,” Spencer was quoted as saying.

However, he has reportedly clarified that the layoffs will not lead to any games, devices, and experiences being cancelled.

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Also Read | Tech layoffs surge in August with 27K job cuts, highest since January: US, China, and Canada impacted

The latest round of job cuts are related to Microsoft’s mega acquisition deal with Activision Blizzard, the company behind popular video games such as Call of Duty, World of Warcraft, and Candy Crush Saga.

After months of back and forth with regulators in the UK and US, the Xbox maker closed the $68.7 billion deal to acquire Activision Blizzard in October last year.

At the start of 2024, Microsoft laid off over 1,900 employees, trimming its 22,000-strong gaming unit by 8 per cent. It recently shuttered several video game studios such as Redfall developer Arkane Austin as well.

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