Microsoft will lay off 1,900 workers at Activision Blizzard and Xbox this week, it said Thursday, the latest cut in a technology sector that has extended massive layoffs to 2024 in past years.
The cuts represent about 8 percent of the overall Microsoft gaming division and will mostly occur at Activision Blizzard.
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This comes months after Microsoft closed its $69 billion (roughly Rs 5,73,621 crore) deal with industry leader Sony to better compete for top-selling titles in the video gaming market, including Call of Duty.
"Microsoft's announcement that it will lay off 1,900 video game workers makes it clear that, even when you work for a successful company in a highly profitable industry, your livelihood is not secure without job buzz," said the Communications Workers of America (CWA). . .
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"We will continue to support Microsoft and video game industry workers who want to have a union voice on the job," it added.
Several other major companies, such as Alphabet, Amazon.com, and eBay, have cut thousands of jobs in recent weeks to cut costs and boost profitability.
More than 21,000 workers were let go at 76 tech companies in January, according to the tracking website Layoffs. FYI.
According to a report by Challenger, Gray & Christmas earlier this month, the technology sector will shed 168,032 jobs in 2023 and account for the highest number of layoffs across industries. This includes more than 10,000 cuts from Microsoft.
Analysts and industry experts say they expect fewer layoffs this year, with companies racing to enter the AI space more likely to downsize to offset the billions of dollars spent on the technology.
The Verge first reported Microsoft's latest job cuts.
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