Summary
Microsoft Corporation has announced that it will eliminate approximately 650 positions within its gaming division. This decision is part of the company’s ongoing efforts to optimize operations following its significant acquisition of Activision Blizzard, the developer of the highly popular “Call of Duty” series, for $69 billion. Phil Spencer, the head of Microsoft Gaming, conveyed this news to employees in a memo obtained by AFP, stating that the layoffs, which predominantly target corporate and support positions, are intended to “organize our business for long-term success.” In his message to staff, Spencer described the situation as challenging, acknowledging the difficulties associated with such organizational changes. The Communications Workers of America (CWA), a labor union representing professionals in the video game sector, expressed disappointment over these layoffs, particularly as they follow similar reductions at Bungie, a subsidiary of Sony Interactive Entertainment, which announced 220 job cuts in July. Samuel Cooper, a senior producer for World of Warcraft and a CWA member, characterized the trend of layoffs in the industry as “heartless” and increasingly common. Earlier this year, Microsoft confirmed a substantial reduction in its gaming workforce, with 1,900 employees, or about eight percent of the division, being let go as part of the ongoing integration of Activision Blizzard. Spencer had emphasized the commitment of both Microsoft and Activision to establish a “sustainable cost structure” conducive to the growth of their gaming operations, which currently employ 22,000 individuals across various divisions, including Xbox. It is important to note that Microsoft has assured stakeholders that these recent layoffs will not result in the cancellation of any games or the closure of any studios within its gaming unit. Meanwhile, the video game industry has witnessed a wave of similar employment reductions, with Sony PlayStation also announcing the layoff of approximately eight percent of its global workforce, which translates to 900 positions worldwide, including those at the PlayStation London studio dedicated to virtual reality projects. In the context of the broader technology sector, it has been reported that nearly 260,000 jobs were lost last year, and to date, there have been 136,360 layoffs across 435 tech companies this year, as tracked by layoffs.fyi, a database focused on industry employment trends. In conclusion, Microsoft’s recent layoffs underscore the ongoing challenges and strategic adjustments within the video game industry, as companies navigate the complexities of mergers and the quest for sustainable growth amidst an evolving market landscape.
Original Source: gulfnews.com
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