Microsoft has laid off hundreds of its staff across multiple divisions, with speculation including its Xbox gaming sector, in a move that is described as a shift in business priorities.
The layoffs were confirmed to Business Insider, who reports that fewer than 1000 people lost their jobs at Microsoft in a move a spokesperson in a statement to the outlet stated was effectively a shift in business priorities.
Per Microsoft, via Insider:
"Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead."
As such, layoffs seemingly have hit sectors at Microsoft that include gaming, such as Studio Alpha which works primarily on war gaming simulations, as well as the Mission Expansion cloud government team. The layoffs account for less than 1% of its total work force (Microsoft is staffed with around 180K employees), which seems to be in line with statements made back in July according to GamesIndustry.biz, though it's not been confirmed by the tech giant to be part of those announced layoffs.
Microsoft, as you know, has been in gaming news recently thanks to its attempt to acquire gaming giant Activision Blizzard for a record $68.7 billion. The acquisition comes as Activision Blizzard is embroiled with lawsuits alleging a sexist environment where multiple staffers were harassed by other employees, including a new lawsuit filed by a former employee recently. The State of California is also suing the company, alleging the same "frat boy culture" at the center Blizzard, while calls for current CEO Bobby Kotick to step down have only increased.
In the meantime, Microsoft is attempting to buy the publisher, though is facing stiff resistance by Sony, who claims that the move would harm competition, and says the deal is bad for the industry and gamers. Microsoft has recently countered, stating the opposite, that the deal is in fact good for gamers, developers and the industry as a whole.
