Microsoft has confirmed a new round of layoffs that has reportedly affected nearly 1,000 employees across multiple levels, teams and parts of the world. This is the second round of job cuts for Microsoft this year and Activision could be a troublesome acquisition of Blizzard.
Microsoft, the brain child of Bill Gates and Paul Allen, was founded in 1975 and has since become one of the most successful gaming and tech companies of all time. Despite the success of products such as the Windows operating system and the Xbox line of consoles, the company is feeling the pressure of record inflation and a worldwide economic downturn. Along with competitors such as Meta and Google, Microsoft has been reorganizing its workforce to mitigate the effects of the US recession, even going so far as to eliminate its Modern Life Experiences team last August, which The effect was all around. 200 posts.
On Monday, October 17, a Microsoft spokesperson confirmed the latest round of job cuts, although they did not provide any official figures. However, an Axios report cited “an unidentified person familiar with the matter” as a source for the number of layoffs. To explain the situation, Microsoft reported the company’s lowest revenue growth in more than five years in the quarter ended Sept. 30 and claimed, “Like all companies, we have a constant focus on our business priorities. evaluate the fundamentals, and make structural adjustments accordingly. We will continue to invest in our business and hire in key areas of growth in the coming year.”
The news comes as a disappointment for Microsoft as its ongoing $70 billion acquisition of Activision Blizzard has been blocked by a Phase 2 investigation by the UK Competition and Markets Authority (CMA). The CMA cited major antitrust concerns and announced a Phase 2 investigation on September 15, after Microsoft’s response failed to address the authority’s concerns. The blow could change the direction of Microsoft’s post-acquisition plans and may have been a factor in the recent decision to let employees go. A successful merger of Activision Blizzard will bring lucrative franchises such as Overwatch, Diablo, Call of Duty, The world of gaming, Crush the candy, Starcraftand more for Microsoft, which could spur investment and economic growth.
Microsoft’s recent layoffs are not unique in the tech industry or any other industry at the moment. A volatile economy and cost-of-living crisis will influence companies to tighten their belts with hiring freezes, restructuring, and unfortunate job cuts. Fans of Activision titles will be waiting to see where. Microsoft Takes the company’s IPs as more news is released on the current acquisition effort.
Source: Axios