Gaming giant Microsoft has announced another round of layoffs, this time affecting 650 employees within its Xbox division. This marks the third wave of layoffs for the company this year as it seeks to simplify its operations and integrate its recent $69 billion acquisition of Activision Blizzard.
The downturn of the gaming industry has led to mass layoffs, studio closures, and project cancellations across the sector. Microsoft’s latest job cuts are part of this broader industry trend.
The affected employees primarily work in corporate and support functions within the Xbox division. However, the company has assured that no games, devices, or experiences will be canceled. No studios will be closed as a result of these adjustments.
Microsoft’s acquisition of Activision Blizzard last year significantly expanded its presence in the video game market, adding popular titles like “Call of Duty” to its portfolio. This move was aimed at strengthening its competitive position against industry leader Sony.
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Microsoft has faced previous layoffs this year, including a round in January that impacted 1,900 employees at Activision Blizzard and Xbox. In May, Microsoft also shut down several gaming studios, including Arkane Austin.
The global video game market has seen a decline in growth, according to research firm Newzoo. This is attributed to underperforming console sales and a relatively light release schedule of games this year. Microsoft’s latest job cuts reflect the challenges faced by the industry as it navigates these changing dynamics.
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