Microsoft Layoff: Company To Cut Hundreds Of Jobs In Xbox Gaming Unit | Economy News

The gaming industry experienced widespread layoffs, studio closures, and project cancellations in the first half of the year, largely due to a slow recovery in gamer spending after engagement levels surged during the pandemic. According to a report, the latest round of job cuts at Microsoft will primarily impact corporate and support roles. Xbox chief Phil Spencer informed employees about the decision in a memo.

According to the memo, no games, devices, or experiences are being cancelled and no studios will be shut down as part of these adjustments. Earlier this year, Microsoft cut around 1,900 jobs in January, many of which affected Activision units and studios.

Microsoft, in May closed four studios that it had acquired through its 7.5 billion dollars purchase of ZeniMax. However, this trend isn’t unique to Microsoft; it reflects broader challenges facing the gaming industry. Companies like Sony Group, Take-Two Interactive, and Electronic Arts have also laid off employees and halted major projects, according to the report.