Layoffs in tech companies are becoming more common than we would want them to be. It just came out that now Microsoft is laying off around 650 employees. Most of these employees are from the gaming division. In the past, about 1,900 Activision Blizzard and Xbox employees were also laid off.
Gaming studios such as Arkane Austin, the developer behind the game “Redfall”, have also been shut down recently. Phil Spencer, who is the Chief at Xbox, shared this news via an internal memo. He said that these layoffs are a part of their restructuring plans. These come after Microsoft acquired Activision Blizzard in October for $68.7 billion. He further said that no games, devices, or experiences are being canceled and no studios are being closed as part of the latest layoffs.
The memo read, “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long-term success.”
These layoffs mainly affect corporate and supporting functions within the gaming division. Those employees who have been affected by the layoffs in the US will receive exit packages, including severance, extended healthcare, and outplacement services.
Spencer’s memo further read, “Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness. He further added that he believes that these changes will help better position Microsoft’s gaming division for long-term success.
The commonality of these layoffs in the tech sector is now being concerning. Every other day, there’s news that some major tech company is laying off entire divisions.