Microsoft cutting 650 jobs in Xbox Games Unit

Technology giant Microsoft Corp is cutting 650 jobs in its Xbox unit, with the layoffs occurring for the third time this year.

The roles affected are believed to span mostly corporate and supporting functions, according to Bloomberg who report a memo was sent to staff by Xbox chief Phil Spencer. Staff were notified by the message on Thursday (September 12).

“No games, devices or experiences are being canceled and no studios are being closed as part of these adjustments today,” the chief was said to have noted.

While it has been a brutal few years for the games industry, Microsoft will be trying to rein in costs following its $69 billion acquisition of Activision Blizzard which was completed in October 2023.

The deal gave the team new content and talent, but the figure they paid could be looming over the company.

It was only in January when Microsoft cut 1,900 jobs, with many being from Activision units and studios. A few months later, in May, the American-based business announced the end of four studios acquired as part of the $7.5 billion purchase of ZeniMax.

Microsoft’s impending Xbox layoffs ‘disappointing’

In response to the news, the Communications Workers of America union has published a statement. The union represents people in a range of industries including technology and media.

“Microsoft’s decision to lay off 650 video game workers is an extremely disappointing move from one of the world’s largest and most profitable corporations. This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July.

Please read the following statement from @CWAUnion regarding Microsoft's decision to lay off 650 video game workers:https://t.co/VCt0JWfu07

— CODE-CWA (@CODE_CWA) September 12, 2024

“While none of those who are losing their jobs are represented by CWA, we understand how devastating layoffs are to the workers and their families.”

The senior producer at World of Warcraft Samuel Cooper said “Every worker deserves a voice on the job and a say over the impact of job cuts.

“While we would hope that a company like Microsoft with $88 billion in profits last year could achieve ‘long-term success’ without destroying the livelihoods of 650 of our colleagues, heartless layoffs like these have become all too common.

“We stand in solidarity with everyone who lost their job today and encourage all video game workers to join with us and form unions so we can protect each other.”

Featured Image: Via Ideogram

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