Microsoft to Cut 650 Support Jobs in Xbox Games Unit
Company Citing Shift to Digital Operations
Microsoft plans to cut 650 support jobs in its Xbox Games unit, Bloomberg News reported on Thursday, as the company shifts to digital operations and reduces its reliance on phone and chat support.
The move comes as the video game industry increasingly embraces digital distribution and cloud gaming, which require less customer support than physical media and traditional console gaming.
Impacted Roles
The layoffs will primarily affect support staff who handle phone and chat inquiries from Xbox customers. These roles include:
- Customer service representatives
- Technical support specialists
- Billing and account management personnel
Digital Transformation
Microsoft says the shift to digital operations will improve customer experience and reduce costs. The company is investing in self-service support tools, such as online knowledge bases and community forums.
In addition, Microsoft is expanding its use of artificial intelligence (AI) to automate support tasks, further reducing the need for human support staff.
Industry Trends
The move towards digital operations is not unique to Microsoft. Other gaming companies, such as Sony and Nintendo, are also reducing their reliance on traditional customer support channels.
The industry is following the broader trend of digital transformation across various sectors, driven by the rise of cloud computing, e-commerce, and mobile devices.
Affected Employees
The layoffs will impact about 650 Xbox support jobs in the United States, Canada, and Europe. Microsoft is offering severance packages and job placement assistance to affected employees.
The company is also working with labor unions to mitigate the impact of the layoffs and support displaced workers during the transition.
Continued Commitment to Customers
Despite the job cuts, Microsoft says it remains committed to providing excellent customer support. The company is investing in new technologies and processes to improve the customer experience.
Customers can still access technical support through the Xbox website, online forums, and social media channels.
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