Microsoft cutting more jobs from its gaming unit

NEW YORK

Microsoft is cutting about 650 more positions from its gaming unit as it continues to tighten its belt following the blockbuster buyout of "Call of Duty" maker Activision Blizzard.

The elimination of mostly corporate and support roles across Microsoft Gaming is intended to "organize our business for long-term success" in the aftermath of the $69 billion acquisition, unit chief Phil Spencer told employees in a memo.

The Communications Workers of America (CWA) labor union, which includes members in the video game industry, called the layoffs "extremely disappointing," coming on the heels of Sony Interactive Entertainment subsidiary Bungie announcing 220 layoffs in July.

Microsoft in January said it was laying off 1,900 people, or eight percent of staff, from its gaming division as it consolidated the buyout of Activision Blizzard.

Microsoft launched its takeover in January 2022, an acquisition that made it the world's third-largest gaming company by revenue.

Layoffs have become common in the video game industry, with Sony PlayStation early this year announcing it was laying off 8 percent of its global workforce.

The company's PlayStation London studio, which was founded in 2002 and specialized in virtual reality gaming projects, was being closed in its entirety, the company said.

In all, last year the tech industry lost some 260,000 jobs according to layoffs.fyi, a California-based website that tracks the sector.

So far this year, layoffs are at 136,360, the site showed, from 435 tech companies.