DigiTech Update

Financial Crash, Microsoft Cuts Hundreds of Workers in Gaming Unit




Those affected are those working in the Xbox Games division with corporate and supporting units.

Unit chief Phil Spencer said the layoffs would involve 650 people in the division, as the company continues to tighten its belt following its major purchase of Call of Duty maker Activision Blizzard.



Phil said the job cuts were meant to “set our business up for long-term success” after the $69 billion acquisition.

Microsoft completed its acquisition of Activision Blizzard last year, strengthening its position in the video game market with blockbuster titles such as “Call of Duty,” to better compete with industry leader Sony.

In January, the tech giant announced it would lay off 1,900 employees at Activision Blizzard and Xbox.

The Communications Workers of America (CWA) union, which includes members in the video game industry, called the layoffs “deeply disappointing,” following Sony Interactive Entertainment subsidiary Bungie’s announcement in July that it was laying off 220 people.

They called it a “heartless layoff.” rmol news logo article

Editor: RENI ERINA




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