In a new wave of job cuts, Microsoft has announced plans to reduce its workforce by 650 employees, primarily in its gaming division. This latest round of layoffs follows the company’s restructuring efforts after its $68.7 billion acquisition of Activision Blizzard in 2022.
The acquisition, which included Activision Blizzard’s net cash, is the largest in Microsoft’s history and has led to significant changes across the organization, prompting further adjustments.
This marks the second round of layoffs for the company this year, affecting corporate and support positions both within the U.S. and globally. Earlier, Microsoft reduced its workforce by 1,900 employees at Xbox.
To support those affected, Microsoft is providing exit packages that include severance, extended healthcare benefits, and job placement services to help them transition to new roles.
In July, Microsoft also made headlines by laying off its internal team responsible for diversity, equity, and inclusion (DEI), attributing the move to “changing business needs.”