Xbox is shaken by layoffs in several of its studios one year after the agreement with Activision Blizzard

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In the midst of the news of a massive layoff at Microsoft of a total of 10,000 people, several employees of Xbox studios (The Coalition, 343 Industries and Bethesda) they are learning that their jobs are in jeopardy.

As reported by Bloomberg and Kotaku, several developers from these three studios have already been informed of the suppression of their positions. Total, 878 jobs will be affected immediately en Microsoft (Washington), y more layoffs are expected until March.

Specifically, the layoffs affected The Coalition (responsible for the Gears franchise as well as a new IP), 343 Industries (which has been continuously supporting Halo Infinite) and Bethesda (which works on Starfield). Still it is not clear if all these layoffs will affect new projectsis how many people of these studies will be victims of layoffs.

In a blog post focused on the layoffs, CEO Satya Nadella noted that they represent less than 5% of Microsoft’s huge workforce, and stated that the layoffs are the result of reduced digital spending by users and the ongoing recession that is affecting and will affect some industries. Microsoft already laid off “hundreds” of people in October last year, and this wave was thought to affect its gaming divisions.

This development comes a year after Microsoft first announced its agreement to acquire Activision Blizzard for $69 billion, a deal that remains in legal limbo in the United States, the United Kingdom and now the European Union. Activision Blizzard would bring nearly 10,000 new employees to Microsoft if the deal closes.

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