Spent IDR 1,061 Trillion to Buy Games, Microsoft Conducts Mass Layoffs

Jakarta, CNBC Indonesia – Microsoft has laid off 650 people in its Xbox video game division. This policy is the third wave of layoffs since Microsoft had to spend US$ 69 billion (IDR 1,061 trillion) in cash to buy the Call of Duty game studio.

CNBC International reported that the hundreds of employees affected by the layoffs mostly carried out corporate and support functions.

Microsoft Gaming CEO Phil Spencer, in an internal memo seen by CNBC International, told his employees that the decision to lay off employees was part of the restructuring after the acquisition and was made for long-term success.

“We are grateful for the contributions of our colleagues who have been affected,” he said.

Spencer emphasized that the layoff policy would not impact game development, devices, or user experience and would not cause the closure of game studios.

Microsoft is carrying out massive efficiency in its Xbox business unit since the company had to spend massive cash to acquire Activision Blizzard, the publisher of the Call of Duty game.

In January, Microsoft laid off 1,900 employees in its gaming division. The wave of layoffs continued in May. At that time, Microsoft closed several of its game studios including Arkane Austin, Tango Gameworks, and Alpha Dog.

Previously, Microsoft also bought ZeniMaz Media in a transaction worth US$ 7.5 billion (Rp 115 trillion). ZeniMax Media is the owner of Bethesda Softworks, the studio that publishes Fallout and The Elder Scrolls games.

The wave of layoffs in the gaming industry is not only happening at Microsoft. In February, Sony laid off 900 employees at PlayStation. Discord, Twitch, and Unity have also announced mass layoffs in the past year.

SOURCE : CNBC INDONESIA