Microsoft is set to cut approximately 650 positions from its gaming division as part of a restructuring following the $69bn acquisition of Activision Blizzard. Phil Spencer, head of Microsoft Gaming, wrote in a memo: “Today is one of the challenging days,” as he acknowledged the difficulties these changes bring. The Communications Workers of America (CWA) expressed disappointment over the layoffs, which follow similar job cuts at other companies in the industry, including Bungie’s announcement of 220 redundancies. Spencer previously noted that Microsoft is focused on establishing a “sustainable cost structure” to support growth in its gaming business, which currently employs 22,000 people. Despite the layoffs, no games or studios are being closed as part of the adjustment.
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