Key Takeaways
- Microsoft is reportedly laying off 1,900 gaming workers, or about 9% of its gaming division after closing its $69 billion acquisition of “Call of Duty” maker Activision Blizzard.
- The layoff comes after a slew of job cuts in the tech industry, with 153 tech companies announcing layoffs since the start of this year, according to trueup.io.
- Nick Bunker, economic research director at Indeed’s hiring lab, said many tech giants are shedding jobs as they “adjust to the current economic outlook after a burst of hiring in 2021.”
Microsoft (MSFT) is reportedly laying off 1,900 workers in its gaming sector or about 9% of its gaming division, not long after closing its acquisition of “Call of Duty” maker Activision Blizzard (ATVI) in a $69 billion deal.
The job cuts come after a slew of layoffs across the tech industry at companies including Google (GOOGL), Amazon (AMZN), eBay (EBAY), and video game maker Unity Software (U). Since the start of the year, 153 tech companies have laid off 32,626 workers, according to trueup.io, a company that tracks tech layoff announcements.
Nick Bunker, economic research director at Indeed’s hiring lab, said many tech giants are shedding jobs as they “adjust to the current economic outlook after a burst of hiring in 2021.”
However, Bunker noted the impact to the broader labor market could be limited, as high-profile layoffs at tech companies in 2023 did not significantly impact the broader labor market amid near-record low unemployment, according to government statistics.
“Last year’s batch of layoffs did not represent what was happening in the rest of the U.S. labor market; the same is true now,” Bunker said in an Indeed report on Wednesday.
Microsoft shares ticked 0.8% higher in intraday trading Thursday following the news. The tech giant became the second company ever to reach a market capitalization of more than $3 trillion Wednesday amid optimism surrounding artificial intelligence (AI) potential.