Microsoft lays off 650 Xbox employees; cites cost cutting, integration efforts
This would be the third layoff cycle of this year after Microsoft's Xbox unit cut 1,900 jobs in January, mostly from Activision units and studios.
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Software giant Microsoft is laying off 650 employees in its Xbox unit, Reuters news agency reported. The company is sacking the staff mostly in corporate and supporting functions. "No games devices or experiences are being cancelled and no studios are being closed as part of these adjustments today," the company said in a memo, as per Reuters.
This would be the third layoff cycle of this year after Microsoft's Xbox unit cut 1,900 jobs in January, mostly from Activision units and studios.
In May, the company decided to shut four studios acquired as part of its $7.5 billion purchase of ZeniMax.
As per the Reuters report, the company is trying to rein in costs and integrate its massive $69 billion acquisition of Activision Blizzard Inc.
The gaming industry has witnessed several challenges such as the rise of game development costs and tepid growth this year.
Sony Group Corp, Take-Two Interactive Software Inc., and Electronic Arts are among the major companies that have slashed jobs and have shelved their marquee projects.
Recently, Sony axed the multiplayer shooter Concord just two weeks after its release as the game received muted responses.
