Microsoft initiated layoffs for 1,900 Activision Blizzard and Xbox employees in the first month of 2024 and continues to dismiss employees, according to the latest reports from close sources. This week, Microsoft is preparing to part ways with many more employees. Earlier this week, Jessie Thomas, Senior Manager of Cultural Programs, was also removed from the company.

Microsoft continues its layoffs as part of cost-saving measures

Microsoft is continuing its layoffs as part of cost-saving measures amidst restructuring efforts in the gaming sector, particularly within the Xbox division. According to Tom Warren from The Verge, the tech giant has already identified the individuals to be laid off, though specifics on which departments and how many employees will be affected have not been clarified.

This isn’t the first round of layoffs in Microsoft’s gaming division; earlier in January, they laid off 1,900 employees from studios like Bethesda, 343 Industries, and The Coalition. This latest wave of layoffs underscores Microsoft’s strategy to review its gaming sector operations and optimize resource allocation.

In recent years, Xbox has made significant investments and pursued an aggressive acquisition strategy, notably with the acquisition of Activision Blizzard, which caused a stir in the industry. However, challenges during the acquisition process and increasing competition and costs in the gaming sector are prompting Microsoft to take steps towards improving efficiency.

What are your thoughts on Microsoft’s layoff policy in light of these developments? Feel free to share your opinions with us in the comments section.