MicrosoftXbox owner Microsoft will cut around 650 jobs from its gaming division in a new round of redundancies following its $69bn (£54.3bn) merger deal.
The software giant said employees “primarily working in enterprise and support functions” around the world would be affected.
It fired 1,900 employees in January In May, Four studios closed The company previously acquired Call of Duty maker Activision-Blizzard.
In a memo to staff shared online and confirmed by the BBC, Xbox head Phil Spencer said the recent layoffs “will not result in the cancellation of any games, devices or experiences, nor will any studios be closed.”
When Microsoft acquired Activision Blizzard in October, it also included the acquisition of King, the developer of “Candy Crush Saga”, and previously acquired Zenimax, which owns “Fallout” developer Bethesda.
Spencer told employees that Microsoft has tried to “minimize disruption” as it brings in new teams in the months since the multibillion-dollar acquisition.
He said the layoffs represent about 3% of the gaming workforce and that the decision was made “to adjust the team structure following the acquisition” and “organize the business for long-term success.”
While he said the game and studio would not be impacted, he said there would be “some impact to other teams as they adapt to changing priorities and manage the lifecycle and performance of the game.”
Mr Spencer acknowledged the news was “tough” for workers and thanked those affected for their contribution to the company.
Getty ImagesOver the past two years, during the COVID-19 pandemic, the gaming industry has seen record profits and player numbers, triggering a wave of investment and acquisitions that have led to massive layoffs in the industry.
Companies such as PlayStation maker Sony, League of Legends creator Riot Games and Fortnite owner Epic have all laid off hundreds of employees.
Microsoft was particularly criticized for the closure of acclaimed studios Arkane Austin and Tango Gameworks earlier this year.
Xbox head Mr. Spencer said IGN He is expected to run a “sustainable” gaming company and show growth momentum in a June interview.
During the speech Official Xbox Live at Gamescom Last month, he said that the demands within Microsoft for the company’s gaming division were “high.”
In its Latest financial reports Microsoft said its gaming revenue increased, largely thanks to its ownership of Activision Blizzard, which also makes World of Warcraft, Diablo and Overwatch.
Xbox hardware sales have been declining since last year, and the company has been working to expand its software sales.
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