Microsoft lays off more gaming staff in new cuts

Published On Sep 12, 2024, 10:00 AM

Microsoft has announced the layoff of about 650 employees from its gaming division, primarily affecting corporate and support roles, as part of a restructuring following its acquisition of Activision-Blizzard for $69 billion. Xbox head Phil Spencer assured that no games, devices, or studios are being canceled or closed as a result of these layoffs, which constitute approximately 3% of its gaming staff. The company has faced criticism for previous job cuts and studio closures. While Microsoft's gaming revenue has increased, driven largely by the acquisition, sales of Xbox hardware have declined, prompting a shift towards boosting software sales.

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Stock Forecasts

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Negative

Given the mixed signals from Microsoft's gaming division – job cuts alongside rising revenues from the Activision acquisition but falling hardware sales – it could indicate a potentially turbulent period as the company aligns its resources. The layoffs may decrease operational efficiency in the short term, possibly impacting investor confidence.

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