Microsoft to Cut 650 More Gaming Jobs

Microsoft has announced the elimination of approximately 650 roles within its gaming division, marking the second major round of workforce reductions for the company in 2024. These cuts are primarily focused on corporate and supporting functions, particularly within the Activision Blizzard unit, as the company seeks to align its organizational structure following the $69 billion acquisition finalized in October 2023. Unlike previous layoffs, which involved the cancellation of specific game projects, this latest reduction does not impact any active games, devices, or experiences, nor does it involve the closure of any studios or the removal of business unit leadership.

The layoffs reflect a broader industry trend of contraction following the post-pandemic boom, as major publishers move to optimize costs and adjust to shifting market priorities. While the majority of the affected roles are administrative, the restructuring also includes adjustments to live-ops teams for mobile titles such as Warcraft Rumble and Call of Duty: Warzone Mobile. These specific mobile-focused changes are attributed to evolving performance goals and market challenges rather than the direct integration of the recent acquisition.

Microsoft’s leadership maintains that these measures are necessary to ensure the long-term profitability and sustainable growth of the gaming business. Despite the reduction in headcount, the company continues to project revenue growth for the gaming division, heavily supported by the performance of the Activision Blizzard portfolio. Affected employees in the United States are being provided with severance packages, extended healthcare, and outplacement services, while international support varies by region.