Microsoft cuts 650 jobs in video game division
Microsoft Corp.
$435.15
11:49 17/09/24
Microsoft is cutting 650 jobs from its video game division, according to a company email seen by The Wall Street Journal on Thursday.
Dow Jones I.A.
41,606.18
04:30 15/10/20
Nasdaq 100
19,432.40
11:50 17/09/24
The move follows 1,900 redundancies in May and comes at a time of massive layoffs across the gaming industry and companies contend with a tailing off of growth post-pandemic.
Microsoft has been steadily cutting gaming jobs since its $75bn takeover of videogame giant Activision Blizzard in October 2023, which added 10,000 to its overall headcount.
According to the internal memo, the job cuts are not a result of closures or cancellations to any games, devices or studios – unlike May's layoffs when three studios were closed – but are instead a result of a departmental reorganisation.
Phil Spencer, who heads up Microsoft Gaming, said in the email that the redundancies are part of a plan to "organised our business for long-term success", and mostly relate to people in corporate and support roles.
Microsoft's stock futures were more or less unchanged ahead of the opening bell on Wall Street.