By Natalia Rueda 
In light of the growing wave of layoffs in the video game industry, Microsoft has announced its own job cuts, with nearly 2,000 employees affected in its Xbox division. This news comes shortly after the company completed its $69 billion acquisition of Activision Blizzard, giving it control of popular franchises such as Call of Duty and World of Warcraft.
In a memo to staff, Xbox chief Phil Spencer acknowledged that this was a “painful decision” for the company and expressed gratitude to employees who “brought creativity, passion and dedication” to their work.
However, this move is part of Microsoft’s effort to align its strategy and execution plan with a sustainable cost structure as the video game workforce shrinks by approximately 8.6 percent.
This announcement also comes on the heels of more than 4,000 job losses in the video game industry so far this year, highlighting the instability and challenges facing developers.
Although 2024 is shaping up to be a big year for the video game industry, with highly anticipated releases on the horizon, it’s also an uncertain time for industry workers. In addition to the layoffs at Microsoft, there has also been the departure of two top executives at Blizzard, president Mike Ybarra and design director Allen Adham. These changes have also resulted in the cancellation of a survival game in development at Blizzard, which had generated a lot of buzz.
Corporate layoffs will increase in the near future due to the current situation. Therefore, it is important for people to be prepared and aware of this reality, to be able to adapt to the changes and develop new skills that will enable them to face the challenges of the ever-changing labor market.