Image Credits-Reuters
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Microsoft has announced another round of layoffs in its gaming division, cutting 650 jobs as the tech giant continues to restructure its business amid ongoing challenges in the gaming industry. The layoffs, affecting multiple teams within Xbox Game Studios and its subsidiaries, come as Microsoft grapples with shifting market conditions and internal struggles within its gaming division.
The latest job cuts are part of a broader workforce reduction plan that Microsoft began earlier this year, aiming to streamline operations and reduce costs. Despite substantial investments in its gaming portfolio, including its $69 billion acquisition of Activision Blizzard, Microsoft’s gaming unit has faced recent setbacks with underwhelming game launches and internal leadership shakeups.
“We are making tough decisions to ensure our teams are aligned with the strategic priorities of the business,” said a Microsoft spokesperson. “While these layoffs are difficult, they are necessary to position us for long-term success in the gaming industry.”
Affected employees reportedly include developers, engineers, and support staff from Xbox Game Studios, with some teams facing deeper cuts than others. The layoffs have sparked concern among industry insiders about the future of Microsoft’s gaming strategy, particularly regarding its reliance on Game Pass, the subscription service that has been at the center of its gaming push.
The gaming division’s challenges have been compounded by delays in high-profile titles and mounting pressure from competitors like Sony and Nintendo. As Microsoft continues to navigate these hurdles, analysts speculate that further restructuring may be necessary to maintain its competitive edge.
Despite the layoffs, Microsoft insists it remains committed to its gaming vision, focusing on expanding cloud gaming, strengthening the Xbox ecosystem, and delivering new content for Game Pass subscribers. However, with morale dipping among employees and growing uncertainty about the division’s future, Microsoft’s gaming arm faces a critical period of transition.