Microsoft has taken a tough decision to downsize its gaming workforce, impacting 1,900 employees. This move follows the company’s colossal $69 billion acquisition of Activision Blizzard, which brought iconic titles like Call of Duty into Microsoft’s portfolio.
Phil Spencer, Xbox head, shared the news with staff, highlighting Microsoft’s commitment to supporting affected employees with severance benefits. Despite the challenging nature of these layoffs, they align with a strategic shift post the Activision Blizzard acquisition, aiming for sustainable growth.
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The integration of teams from Activision, Blizzard, and King into Microsoft prompted a reassessment of priorities, leading to the elimination of overlapping areas. Despite this setback, Microsoft’s gaming division remains resilient, unveiling a promising lineup of new games, such as MachineGames’ Indiana Jones and Obsidian’s Avowed, reaffirming its dedication to high-quality gaming experiences.
These layoffs occur against the backdrop of a broader industry trend. The gaming sector has witnessed a surge in job cuts, reflecting the industry’s ongoing evaluation of strategies in response to a rapidly evolving market.
