Xbox Game Studios Faces Further Job Cuts As Microsoft's Restructuring Continues

By Thea Felicity

May 09, 2024 01:47 PM EDT

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Microsoft's Xbox division is gearing up for additional job cuts as Microsoft continues its restructuring methods.

Per Game Developer, the tech giant has sought ways to optimize its gaming subsidiaries, including Xbox Game Studios. Following its massive acquisitions of Activision Blizzard for $68.7 billion and ZeniMax Media for $7.5 billion, the company is reportedly continuing its cost-cutting efforts.

Now, to expedite job cuts, Microsoft is offering voluntary severance agreements to employees, including producers and QA testers, at ZeniMax as part of an ongoing restructuring initiative. 

READ NEXT: Microsoft Xbox Announces Closure of Four Gaming Studios Over Disappointing Sales

Microsoft Xbox Gaming Divison's Layoffs

VCPost reported that four major gaming divisions are already on their way to closure, laying off approximately 1,900 workers.

Matt Booty, head of Xbox Game Studios, suggests that Microsoft has been spreading its resources thinly across multiple projects, similar to spreading a thin layer of peanut butter over a large piece of bread. 

He further underlines the need to concentrate on fewer projects to ensure greater effectiveness and efficiency. 

Regardless, Microsoft reiterates its dedication to creating top-quality games, a sentiment emphasized by Booty during the meeting. However, internal discussions within the company raise questions about whether to increase the Xbox Game Pass Ultimate price and include the flagship franchise Call of Duty in the Xbox Game Pass subscription service. 

No definitive plans have been finalized. However, more job cuts and store closures are still imminent.

READ MORE: Microsoft Starts Exploration On AI in Gaming Through An Upcoming Xbox AI Chatbot

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