Tweakers · Technology

XBOX Reportedly Planning New Round of Layoffs and Studio Mergers

XBOX, a division of Microsoft, is considering a new wave of layoffs that could affect hundreds of employees. This follows previous layoffs and a restructuring of publishing divisions.

According to sources at The Information, the layoffs will be announced this week, although the specific departments remain unclear. A restructuring of the publishing divisions, including XBOX Game Studios, Bethesda, Activision, and Blizzard, is expected. It is possible that elements of these divisions will be merged, which could lead to job losses.

This would be the second major round of layoffs at XBOX this year. In July, Microsoft already announced a larger wave, with 1600 XBOX employees leaving immediately and another 1600 following later. Two studios were divested and two were sold.

This round of layoffs is the largest in the gaming industry ever and is attributed to a combination of factors. During the coronavirus pandemic, many employees were hired to cope with the peak in the sector, but many jobs were lost when people returned to the office.

New XBOX CEO Asha Sharma speaks of a 'reset' due to XBOX's ongoing profitability problems, partly due to competition from Sony. The growth of XBOX Game Pass is disappointing, despite significant investments in studio acquisitions, such as the nearly 69 billion dollar acquisition of Activision Blizzard.

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