Microsoft To Cut 650 Jobs In Xbox Division: Report

Microsoft has said it will lay off 650 employees in its Xbox division, marking the third round of job cuts in 2024 as the company continues efforts to control costs following its USD 69 billion acquisition of Activision Blizzard. 

According to a Bloomberg report, the layoffs will primarily impact corporate and support roles within Xbox, though no gaming studios will be shuttered and no ongoing projects will be canceled.

The layoffs come at a challenging time for the gaming industry, which has been grappling with a slowdown in consumer spending following the peak of player engagement during the Covid-19 pandemic. 

Many companies in the sector have resorted to mass layoffs, studio closures, and the cancellation of game projects as they adjust to a weaker recovery in demand. Earlier this year, Microsoft let go of 1,900 employees from both Activision Blizzard and Xbox and closed multiple game studios, including Arkane Austin.

Despite the cuts, Xbox chief Phil Spencer assured staff in a memo that the company remains committed to its current portfolio, including popular titles like "Call of Duty," which Microsoft acquired through the Activision Blizzard deal. Industry analysts, however, have noted a broader slowdown in the gaming sector. 

(Inputs from Reuters)