Microsoft Raises Payouts to Shareholders Despite Massive Layoffs

A few days ago, Phil Spencer, the CEO of Microsoft Gaming, announced that the company is planning to fire around 650 employees. However, according to a recent Bloomberg report, the company plans to increase payouts to shareholders by 10%.

As of November 21, shareholders will receive a quarterly dividend of 83 cents a share, compared with the current 75 cents. The company also announced that a new $60 billion share repurchase agreement replaces the 2021 buyback program of the same value.

The recently announced job cuts are to optimize team structure after Microsoft acquired Activision Blizzard in October last year for $69 billion. This is not the first time Microsoft has fired its employees en masse this year. The company fired 1,900 developers, which represented about 8% of its gaming division workforce, from Activision Blizzard and Xbox in January. Later in June, it shut down four studios, including Arkane Austin, the developer of Redfall, and Tango Gameworks, known for Hi-Fo Rush. These shutdowns were met with strong backlash. Founder of Arkane Studios Raphael Colantonio called Microsoft "short-sighted," and multiple developers, reporters, and bloggers also expressed their discontent.

Read the details here and join our 80 Level Talent platform and our Telegram channel, follow us on Instagram, Twitter, LinkedIn, TikTok, and Reddit, where we share breakdowns, the latest news, awesome artworks, and more.