Microsoft has been laying off employees from its gaming arm for a while now, and a new report now suggests that Microsoft are going to lay off employees from Xbox again next week.
In January 2024, Microsoft laid off 1900 people working at Xbox. In September 2024, the company again laid off 650 workers from Xbox, with the total number of employees laid off getting to a staggering 2,250. Employees who were going to be laid off received a memo from Xbox head Phil Spencer who made it clear that the layoffs are because of Microsoft’s acquisition of Activision Blizzard, which happened in 2023.
The Federal Trade Commission (FTC) challenged Microsoft’s acquisition of Activision Blizzard, but it lost the appeal.
In other news, Microsoft reportedly cancelled its long rumoured in-house Xbox handheld to focus on Asus ROG Ally X and Ally. Recently, the company also announced Meta Quest 3S Xbox edition, which is the first ever limited edition variant for the Quest virtual reality headset.
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