Microsoft is adjusting its workforce after acquiring Activision Blizzard.
Microsoft has laid off gamers again this year. The January round cut 1,900 jobs, followed by two more: 1,500 at the start of the summer, mostly for HoloLens 2 and Azure jobs, and an unspecified number in July, across various regions.
Again, the gamers take over. This time, 650 jobs will be lost. Phil Spencer informed his employees via email that these are corporate and support jobs. Last October, Microsoft bought Activision Blizzard for 69 billion dollars. Most of these layoffs affect former employees.
Spencer adds in the email that “no games, devices, or experiences” will be affected and no studios will close. One Blizzard game closed in the previous layoffs. Microsoft then shut down Bethesda-affiliated Arkane Austin, Alpha Dog Studios, and Tango Gameworks in May.
After buying Activision Blizzard, Microsoft is restructuring, which prompted this crisis policy. It expects profits to rise 30% in the third quarter (ending in September).
The video game industry had 6,000 layoffs by the end of last year after the pandemic boom caused many studios and companies to grow out of control. Playstation fired 900 workers in February this year.
Our goal over the past year has been to minimise disruption while welcoming new teams and helping them succeed. To organise our business for long-term success, we eliminated 650 Microsoft Gaming positions, most of which were corporate and support roles, after the acquisition.
This is hard news. We appreciate the contributions of our colleagues who are discovering their impact. Our exit packages include severance pay, expanded healthcare, and outplacement services to help them transition in the US; packages vary by location abroad.
With these changes, our corporate and support teams and resources are aligned for sustainable growth and can better support our studio and business unit teams with scalable programs and resources.
Other teams must adapt to changing priorities and manage game lifecycles and performance as part of running the business. These adjustments won’t cancel games, devices, or experiences or close studios.
We’ve had good and bad times as a team. Today is hard. I know more changes like this are tough, but even in the hardest times, this team has shown each other love and understanding as we work to provide the best for our players. We appreciate your compassion and respect during these changes.
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