Microsoft has laid off workers from its Xbox gaming division twice this year, bringing the total number of staff departures to 2,550.
In January 2024, three months after paying $68.7 billion to acquire Activision Blizzard, the company behind video games like Call of Duty, Tony Hawk, Crash Bandicoot, and others, Microsoft laid off 1,900 workers from its Xbox Gaming Group. left However, history repeated itself a few months later on 12 September 2024, when the corporation chose to lay off 650 workers from the same division.

Microsoft Gaming CEO Phil Spencer said in an internal memo shared with staff members that the company's goal for the past year was to reduce barriers by integrating new teams and giving them the tools they need to succeed. is They made the difficult choice to eliminate approximately 650 positions within Microsoft Gaming to better manage operations and better align their team structure in light of recent acquisitions. This will help them position their organization for long-term success.

Additionally, Phil has said that most of the responsibilities that will be released will come from corporate and support departments. Additionally, it has stressed that no games, gadgets, or other experiences—that is, its offerings—will be discontinued.

Phil also said exit packages will be used to support staff in the US. They will receive moving out assistance, additional health care assistance, and severance pay. Additionally, packages shipped outside of the US will vary by destination.

However, this has inadvertently turned into a trend in the sector, with a number of businesses making comparable choices. According to a report, the gaming business was expected to have a total of 11,250 workers in 2023.

But even in 2024, things have not improved much. By the end of January 2024, it is predicted that around 6,000 game developers will have lost their jobs. About 11,000 by the end of June 2024.

The company's viability and longevity in the market have reportedly been affected by these layoffs. However, in the past, Microsoft has also shelved businesses it previously bought from ZeniMax Media, including Alpha Dog (developers of Mighty Doom and Wraithborne), Arcane Austin (makers of Dishonored 1 and 2), and Tango Gameworks (creators of Hi-Fi Rush and The Evil Within). All these decisions led to layoffs.

The PlayStation 5 console has surpassed the Xbox Series X by 30.24 million copies, giving us reason to suspect that Microsoft has decided to take a massive anti-PlayStation stance during our investigation. But in February 2024, they too joined the bandwagon, laying off 900 workers.