Microsoft to lay off 650 people from videogame business: WSJ

Microsoft Corp. (MSFT) is laying off about 650 employees from its videogame business, the Wall Street Journal reported Thursday, citing an email from the head of Microsoft Gaming that it reviewed. Phil Spencer, chief executive of the unit, said no studios will be closed and no game, device or experience will be canceled. The move is the latest by Microsoft to cut costs after its $75 billion acquisition of Activision Blizzard last year. The company already laid off about 1,900 workers from the unit at the beginning of the year and closed three studios in May. The move comes as the global gaming market, which benefited from stay-at-home mandates during the pandemic, has seen slowing demand since 2022 and has recovered only modestly since then. Microsoft's stock was flat premarket but is up 12.5% in the year to date, while the S&P 500 has gained 16.4%.

-Ciara Linnane

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09-12-24 0747ET

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