Microsoft Corporation, the owner of gaming platform Xbox, has announced plans to lay off 268 employees from its video-game division as the company consolidates its gaming operations.
The company plans to bring several of its game studios under the Activision division, which publishes major titles including Call of Duty, as well as classic franchises such as Crash Bandicoot and Spyro the Dragon.
The restructuring will also see Rare and World’s Edge, the studio behind the Age of Empires franchise, placed under Activision’s oversight.
Microsoft acquired Activision Blizzard for $69bn in 2023.
According to Xbox Chief Content Officer Matt Booty, Activision will also oversee development of the next Halo game.
The latest layoffs are expected to affect employees at Microsoft’s Halo Studios, which will continue working on its existing projects.
In a statement regarding the layoffs, Booty said, “We are eliminating 268 roles across Halo Studios, other first-party studios and the XGS management and central functions layer. The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring.
“I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them. Second, we are reorganising our studios. The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together and focusing our publishing expertise.”
Booty added, “Our focus should be on supporting those affected and treating one another with care and respect. I will spend time with our studios over the next week. At our 6 October town hall, we will come together as an All-Xbox team to reflect on our progress and look ahead to one of the strongest game lineups in our history.”
Microsoft announced in July that it would lay off about 4,800 employees, including 3,200 workers at Xbox, as part of efforts to reduce costs and streamline its organisational structure in response to the growing impact of artificial intelligence and a changing business environment.
