Breaking News: Microsoft Makes Strategic Cuts in Gaming Division After Activision Blizzard Acquisition
In a recent internal memo shared online by IGN, it has been revealed that Microsoft is laying off approximately 650 employees from its gaming division. This move comes just eight months after the company laid off 1,900 employees following its massive $68.7 billion acquisition of Activision Blizzard.
Xbox chief Phil Spencer attributes these latest cuts to the ongoing process of aligning the post-acquisition team structure. The memo emphasizes that these cuts are primarily in corporate and supporting functions, aimed at organizing the business for long-term success.
It's important to note that despite these layoffs, no games, devices, or experiences are being canceled, and no studios are being closed. This is in contrast to the last round of layoffs, which saw the closure of several game studios like Tango Gameworks and Arkane Austin.
As of now, Microsoft has not provided any comments in response to inquiries from TechCrunch.
Analysis:
Microsoft's decision to make strategic cuts in its gaming division signifies a larger restructuring effort following the acquisition of Activision Blizzard. While this move may raise concerns among employees and investors, it is crucial to understand that the company is focused on long-term success and organizational efficiency. As a result, this restructuring may lead to a more streamlined and competitive gaming division within Microsoft. Investors should monitor how these changes impact the company's performance and market position in the coming months.