Despite layoffs, dividends to Microsoft shareholders increase by 10%

A few days ago, Microsoft Gaming CEO Phil Spencer announced that the company plans to lay off around 650 employees. However, according to a recent Bloomberg report, the company plans to increase distributions to shareholders by 10%.

Starting Nov. 21, shareholders will receive a quarterly dividend of 83 cents per share, up from the current 75 cents. The company also announced that a new $60 billion share repurchase agreement will replace the same-value 2021 repurchase program.

The recently announced layoffs are intended to streamline the team structure after Microsoft acquired Activision Blizzard for $69 billion in October last year. This is not the first time Microsoft has laid off employees en masse this year. In January, the company laid off 1,900 developers from Activision Blizzard and Xbox, representing about 8% of the gaming division's workforce. Later in June, it closed four studios, including Arkane Austin, the developer of Redfall, and Tango Gameworks, known for Hi-Fo Rush. These closures were met with fierce backlash. Arkane Studios founder Raphael Colantonio called Microsoft “shortsighted,” and several developers, reporters, and bloggers also expressed their dissatisfaction.

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