Microsoft lays off more gaming jobs after buying ‘Call of Duty’ publisher Activision Blizzard

SAN FRANCISCO, Sept. 13 — Microsoft is laying off about 650 employees from its gaming division as it continues to tighten its belt following its blockbuster acquisition of “Call of Duty” maker Activision Blizzard.

The elimination of mostly corporate and support positions at Microsoft Gaming is aimed at “positioning our business for long-term success” following the $69 billion (300 billion ringgit) takeover, unit chief Phil Spencer told employees in a memo seen by AFP.

“Today is one of those tough days,” Spencer said in the memo. “I know it’s tough to go through more of this type of change.”

The Communications Workers of America (CWA) union, which includes members from across the video game industry, called the layoffs “extremely disappointing,” coming after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in July.

“These heartless layoffs have become all too common,” Samuel Cooper, a senior producer on World of Warcraft and a member of the CWA, said in a statement from union organizers.

In January, Microsoft said it would cut 1,900 jobs, or 8% of its staff, from its gaming division as it consolidates its acquisition of Activision Blizzard.

Spencer told employees at the time that Microsoft and Activision had committed to finding a “sustainable cost structure” to grow the gaming business, which employs 22,000 people and includes the Xbox division.

“We set priorities together, identified common areas and ensured that we were all aligned on the best opportunities for growth,” he added in the note.

In January 2022, Microsoft completed an acquisition that made the company the third-largest gaming company in the world by revenue.

According to Spencer, no games or devices will be canceled, and no studios will be closed as part of the “adjustments” made to Microsoft’s gaming division yesterday.

Layoffs have become the norm in the video game industry. Earlier this year, Sony PlayStation announced it would be laying off eight percent of its global workforce.

PlayStation boss Jim Ryan called it “sad news” and said the cuts would affect 900 people worldwide, including video game studios.

The company announced that its PlayStation London studio, founded in 2002 and specializing in virtual reality game projects, will be closed completely.

The tech industry lost about 260,000 jobs last year, according to layoffs.fyi, a California-based website that tracks the technology sector.

According to the service’s data, this year the number of layoffs amounted to 136,360 in 435 technology companies. — AFP