Microsoft to trim 650 jobs in Xbox unit – report
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Microsoft (NASDAQ:MSFT) is reportedly trimming 650 jobs in its Xbox unit, as the company looks to keep its expenses in check.
The roles that are expected to be cut are mostly in corporate and supporting functions, Bloomberg reported, citing a memo sent to the staff by Xbox chief Phil Spencer on Thursday.
The memo, seen by Bloomberg, added no games, devices or experiences would be canceled, and no studios will close.
In January, Microsoft (MSFT) laid off 1,900 employees at its gaming division, affecting roles at Activision Blizzard, Xbox, and Zenimax.
Microsoft had closed its $69 billion acquisition of Activision Blizzard in October 2023, after a lengthy battle with U.S. and UK regulators.
The company had also allegedly planned to let go of hundreds of employees from its Azure cloud division in June.
Just as in 2023, layoffs have hit the video game industry in 2024. In January, Tencent’s (OTCPK:TCEHY) (OTCPK:TCTZF) Riot Games announced it was laying off 530 employees, or 11% of its workforce. In early January, Unity (U) announced a 25% reduction in workforce, while Amazon’s (AMZN) live-streaming site Twitch announced plans to cut about 35% of its workforce.