Microsoft Cuts 1,900 Gaming Jobs Following Its $69 Billion Activision Blizzard Acquisition Amid Tech Industry Layoffs
Microsoft has announced the layoff of 1,900 employees in its gaming division, representing nearly 9% of the workforce, shortly after completing its $69 billion acquisition of Activision Blizzard. This move reflects a broader trend of job reductions across the technology sector.
Important Highlights
- Microsoft is reducing its gaming division workforce by approximately 1,900 employees, about 9%, after finalizing its $69 billion deal to acquire Activision Blizzard, the creator of "Call of Duty."
- This decision aligns with widespread layoffs in the tech industry, where 153 companies have collectively cut over 32,000 jobs since the beginning of the year, as reported by trueup.io.
- Nick Bunker, Economic Research Director at Indeed’s Hiring Lab, explains that many technology firms are scaling back after an aggressive hiring phase in 2021 to adapt to current economic conditions.
Microsoft (MSFT) has initiated layoffs impacting roughly 9% of its gaming division workforce, totaling around 1,900 employees. This follows the recent closure of its landmark $69 billion acquisition of Activision Blizzard (ATVI), known for the popular game "Call of Duty."
The layoffs are part of a larger wave affecting major tech companies such as Google (GOOGL), Amazon (AMZN), eBay (EBAY), and Unity Software (U). Since January, 153 technology firms have announced job cuts affecting 32,626 employees, according to data from trueup.io, which monitors tech industry layoffs.
Nick Bunker from Indeed’s Hiring Lab notes that these reductions are part of an industry-wide adjustment after rapid hiring in 2021, as companies recalibrate to the current economic landscape.
Despite these layoffs, Bunker suggests the overall impact on the broader labor market remains limited. Government data indicates unemployment rates are near historic lows, and previous tech sector layoffs in 2023 have not significantly affected the wider job market.
“The layoffs seen last year did not reflect the general U.S. labor market trends, and the same applies now,” Bunker stated in an Indeed report released Wednesday.
Following the announcement, Microsoft’s stock price rose by 0.8% during intraday trading on Thursday. The company recently became the second ever to surpass a $3 trillion market capitalization, fueled by optimism around advancements in artificial intelligence (AI).
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