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Microsoft has laid off approximately 2,500 employees, sparking criticism in the wake of its $69 billion acquisition of Activision Blizzard. The move, part of broader corporate restructuring, has raised questions about the company’s priorities and treatment of its workforce, particularly as layoffs hit the gaming division, which saw 1,900 employees cut during the third quarter alone, with an additional 650 jobs eliminated later.
Although overall gaming sales dropped, Phil Spencer, head of Microsoft Gaming, reaffirmed the triad’s robust Xbox division and also future plans of breaking the boundaries of console gaming. Spencer hinted at potential new ventures, including handheld gaming, as part of a wider strategy to diversify into mobile and cloud-based gaming sectors.
These plans include purchasing more technology, companies, and talent to bolster Microsoft’s gaming lineup and making games developed exclusively for the Xbox accessible on competing platforms such as PlayStation. Despite these bold expansion strategies, the contrast between the aggressive growth initiatives and significant workforce reductions has drawn scrutiny.
Microsoft’s stock is up by 16% this year, fulfilling the company’s targets more effectively than in the previous periods but still 7% behind the S&P 500 which is now up by 23%. The relationship between stockholder returns and Remuneration for CEOs on one hand and layoffs on the other has attracted debate over corporate and moral responsibility and employee treatment thus pressurizing the tech firm to be more responsible and fairer.
