Microsoft Cuts More Jobs Following Activision Blizzard Acquisition

The layoffs continue to pile up for the gaming industry as Microsoft cuts 650 positions within Xbox. According to CNBC, a memo from Microsoft Gaming CEO Phil Spencer details that these job cuts have been made with the goal of eliminating redundancies that emerged with the acquisition of World of Warcraft and Call of Duty developer Activision Blizzard.

The memo stresses that no games or devices will be canceled as a result of these new layoffs and no studios will be closed this time.

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The news follows a previous round of job cuts that Microsoft made to its Xbox division just three months after closing the Activision Blizzard deal. With those 1900 jobs, this new round brings the post-acquisition total to 2,550 so far in 2024. In his memo, Spencer stated that the affected employees would receive severance, extended healthcare and outplacement services.

Despite numerous successful launches throughout the last two years, the gaming industry has seen significant turnover since mid-2023. In the first half of 2024 alone, the total number of layoffs in the industry surpassed 10K. League of Legends creator Riot Games was among those cutting its workforce early in the year, eliminating 530 positions in January.