Summary
Microsoft Corporation is set to reduce its workforce by an additional 650 positions within its gaming division, as the company reshapes its operations following the significant acquisition of Activision Blizzard, the developer of the popular “Call of Duty” series. This decision primarily affects corporate and support roles across Microsoft Gaming, as stated by Phil Spencer, the head of the gaming unit, in a memo circulated to employees and reviewed by AFP. Spencer emphasized that the layoffs were part of an effort to “organize our business for long-term success” in the wake of the $69 billion acquisition. In his communication to employees, Spencer acknowledged the difficulty associated with such changes, remarking, “Today is one of the challenging days. I know that going through more changes like this is hard.” The Communications Workers of America (CWA), a labor union representing some individuals in the video game industry, expressed profound disappointment regarding these layoffs, particularly following the announcement from Bungie, a subsidiary of Sony Interactive Entertainment, which revealed 220 job cuts in July. Samuel Cooper, a senior producer for World of Warcraft and a member of CWA, criticized the frequency of such layoffs, indicating that “heartless layoffs like these have become all too common.” Earlier this year, Microsoft revealed plans to lay off 1,900 workers, constituting eight percent of its gaming division staff, to facilitate the integration of Activision Blizzard. At that time, Spencer assured employees that both Microsoft and Activision were dedicated to establishing a “sustainable cost structure” for the future growth of the gaming sector, which currently employs approximately 22,000 individuals, including those within the Xbox division. The acquisition of Activision Blizzard, which was initiated in January 2022, has positioned Microsoft as the third-largest gaming entity globally by revenue. Notably, Spencer emphasized in his recent memo that no games or consoles will be canceled, nor will any studios be shut down due to the recent adjustments in their gaming unit. The trend of layoffs appears to be prevalent within the video game industry; for instance, earlier this year, Sony’s PlayStation also announced a workforce reduction of eight percent affecting 900 employees worldwide, including personnel from game development teams. This strategic decline resulted in the closure of PlayStation’s London studio, established in 2002 and known for its work on virtual reality gaming endeavors. Overall, the technology sector witnessed substantial job losses last year, with approximately 260,000 roles eliminated according to layoffs.fyi, a website dedicated to tracking job reductions in this industry. As of this year, there have been 136,360 layoffs reported from 435 technology companies.
Original Source: gulfnews.com
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