Microsoft lays off 650 Xbox employees amid Activision-Blizzard deal

On September 12, 2024, Microsoft announced the layoff of 650 Xbox employees, adding to the 1,900 layoffs that occurred in January 2024. This decision is part of the company's restructuring efforts following the ongoing Activision-Blizzard acquisition deal. The layoffs represent an additional 3% of the Xbox workforce, indicating significant challenges within the division. Microsoft is providing exit packages for affected employees, including severance and extended healthcare, with variations based on location for those outside the U.S. The layoffs are attributed to a combination of factors, including the need to align corporate resources for sustainable growth and adapt to shifting priorities within the gaming industry. The company has faced difficulties such as a poor performance in the current console generation and limitations on the growth of Xbox Game Pass subscribers. Additionally, there has been a strategic shift in releasing major titles on competing platforms like PlayStation. These changes reflect the broader impacts of large-scale mergers, which often lead to workforce reductions as companies streamline operations. The Federal Trade Commission (FTC) has raised concerns regarding Microsoft's transparency in relation to these layoffs, suggesting that they contradict previous statements made during the acquisition process. As Microsoft navigates these challenging times, the company emphasizes the importance of supporting its remaining employees and fostering a culture of care and kindness. The ongoing restructuring aims to better position Xbox for future growth and success in a competitive gaming landscape.