Microsoft to cut hundreds of jobs in Xbox games unit

Microsoft Corp. is set to reduce its workforce in the Xbox division by 650 jobs, focusing on corporate and supporting functions. This marks the third wave of layoffs this year, aimed at cost reduction and integrating the $69 billion acquisition of Activision Blizzard Inc.

The cuts, reported by Bloomberg, were announced through a memo from Microsoft Gaming CEO Phil Spencer on September 12, 2024. Despite these reductions, no games, devices, or experiences will be canceled, and no studios will close, according to Spencer.

Earlier this year, Microsoft laid off 1,900 employees in January, primarily from Activision units and studios. In May, the company shut down four studios acquired in its $7.5 billion purchase of ZeniMax.

The gaming industry as a whole is experiencing similar challenges. Sony Group Corp., Take-Two Interactive Software Inc., and Electronic Arts Inc. have all enacted layoffs and canceled major projects. Notably, Sony canceled its high-budget multiplayer shooter "Concord" just two weeks after its release due to its slow start.

These job cuts reflect broader industry trends as companies strive to balance costs with growth and innovation.