Microsoft’s gaming division is set to lay off almost 2,000 employees, three months after the company’s $69 billion merger with Activision-Blizzard. In a memo from Xbox boss Phil Spencer, it was revealed that the company plans to cut 1,900 positions out of its 22,000 staff. The move is described as a “painful decision,” and the affected employees are expected to include staff within the Xbox division and at publisher Zenimax, overseeing studios like Bethesda and Arkane.
The layoff comes after Microsoft’s acquisition of Activision-Blizzard, known for popular game franchises like Call of Duty and Warcraft. The memo indicated that development on a survival game project, widely known as Odyssey, has been halted.
This announcement adds to the string of layoffs in the gaming industry, with Riot Games recently announcing a reduction of 11% of its global workforce. The industry has been navigating challenges, including the impact of the COVID-19 pandemic and a scaling back after a period of growth.
Microsoft’s move follows a broader trend in the tech sector, with various companies, including Amazon, Meta, and others, announcing significant job cuts. The layoffs in Microsoft’s gaming division highlight the challenges and adjustments occurring in the industry as it evolves and adapts to changing market dynamics.
