Microsoft cuts 650 Xbox jobs, citing cost-cutting and integration efforts

Microsoft has announced another round of layoffs, this time affecting 650 employees within its Xbox division.

The job cuts, which primarily target corporate and support roles, are part of the company’s ongoing efforts to reduce costs and integrate its recent $69 billion acquisition of Activision Blizzard.

This marks the third wave of layoffs at Xbox this year. In January, Microsoft eliminated 1,900 positions, many of which were from Activision units.

In May, the company shuttered four studios acquired through its purchase of ZeniMax.

These moves have sparked concern among Xbox fans, who have expressed frustration with Microsoft’s commitment to building exclusive content.

The company’s decision to release some Xbox games on rival consoles has also raised eyebrows.

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The broader gaming industry has been facing challenges in recent months, with rising development costs and slower growth.

Microsoft Xbox

Other major gaming companies, such as Sony, Take-Two Interactive, and Electronic Arts, have also implemented job cuts and canceled projects.

Microsoft completed its acquisition of Activision Blizzard in October 2023, after a lengthy antitrust battle.

While the deal has provided Xbox with a significant infusion of content and talent, it also presents challenges in terms of realizing a return on investment.