Microsoft has said that it will let go of up to 650 of its workers in the gaming sector, this coming after the company had reduced its gaming business in general. Such decisions are made following the global technology giant Microsoft recently letting go of more than 1,900 employees at Activision Blizzard and Xbox early this year.
Microsoft Slashes 650 Jobs in Major Gaming Division Shakeup Following Activision Blizzard Layoffs
The recent wave of job cuts also falls in line with shutting the gaming studios namely, Arkane Austin, the makers of *Redfall*. The closures and layoffs are part of a broader process of restructuring that has occurred in Microsoft’s gaming division.
Such reductions are being made at a time when things like subscription business model, Xbox Game Pass, and cloud gaming still remain areas of significant investment for Microsoft. However, the company continues to work largely on its long-term gaming plan and effected other such layoffs as well.
Microsoft recently followed this trend by reshuffling the company’s gaming division due to operation integration needs, which have been affected by economic vulnerability. As it is with most companies, the layoffs are expected to effect a number of departments including those in the gaming unit.
The company has not given specific reasons why it let go of its workers, however, some officials aver that the move is aimed at cutting costs. This simply means that Microsoft remains focused on its future gaming projects depending on the reshaping it is making on its workforce.
Phil Spencer Assures No Cancellations or Studio Closures Amid Xbox Layoffs Linked to Activision Deal
Microsoft’s head of Xbox Phil Spencer in an email to Xbox staff shared the recent layoffs within the firm’s gaming division; a copy of the email has been gotten by *The Verge*. He further mentioned that the decision is well-aligned with the company’s integration process of Activision Blizzard which it had recently acquired.
Spencer went ahead to note that following these layoffs, ‘no games, devices, or experiences shall be canceled’ thus ensuring those remain intact. This statement is meant to dispel concerns over the future of Xbox and everything related to gaming as well as current and future projects.
He also went on to add that none of the studios shall be closed down as was the case with earlier rounds of layoffs. This is a significant change because prior cuts resulted in the main studio Arkane Austin, and other gaming studios’ shut down.
Further, the memo insists that these dismissals are quite rational in the sense that they are made in order to optimize the company’s resources according to the shifting business model. Spencer said that these changes will let Xbox to concentrate on its main capabilities, such as cloud gaming and subscription services that are now emerging markets.
Though it unfortunate to lay off employees, the management led by Spencer was optimistic in the future of the company and passionate in bringing quality games to its consumer. The message shows especially the willingness to restructure on the other side not to let the firm stand still and keep the gaming platform fresh.
Phil Spencer Outlines 650 Job Cuts as Microsoft Restructures Post-Activision Blizzard Acquisition
Microsoft laid off employees in June and in an e-mail, Xbox division head Phil Spencer mentioned that, it is due to reorganising the teams after acquiring Activision Blizzard. The move, which Ligging says affects about 650 positions, mostly hits corporate and support positions within Microsoft Gaming.
It is important to understand that bearing the title of organizational changes, Spencer stressed that the goal of this process is to create strong base for the company’s constant development. In this sense, the company wants to consolidate processes to be ready to face new innovations and trends in the gaming sector.
Microsoft’s acquisition of Activision Blizzard, was done at $68. Of over 7 billion in October this was a very big achievement for the company. The completion of the deal was subjected to several hustle with the authorities in both the UK and the US and then app roved.
These layoffs come after this big acquisition, which means that Microsoft is in the process of reorganizing the Activision Blizzard within its overall gaming segment. Nevertheless, the desire of the company to carry on with this vision for the future of Gaming is still intact.
Determining the current strategies of Spencer, he had to provide reassurance to the employees regarding this fact that no significant gaming projects or studios will be closed. The company continues to berth its major strategic efforts on advancing innovation and growth in places such as cloud gaming and subscription service.
