5 days after reports of another 650 layoffs at Microsoft Gaming, the company announces plans to pay out even more money to shareholders
Microsoft is expected to pay even higher dividends to its shareholders starting in November, despite recent reports that the company will lay off 650 gaming employees.
As reported by BloombergMicrosoft shareholders will soon receive an increased quarterly dividend payout for each share. Starting November 21, it will increase by 10% to 83 cents per share instead of the current 75 cents. In addition, the company announced a $60 billion program to buy back its shares, replacing a separate program of the same size that Microsoft announced in 2021.
That’s a lot of money — keep in mind that Microsoft previously acquired Activision Blizzard for $68.7 billion, so that’s not far from being in the same ballpark. All in all, it could also be seen as questionable timing, as the announcement comes less than a week after news that the company is laying off 650 of its gaming employees. Most of the people affected are reportedly in corporate and support roles, and there are no plans for game studios to close as a result.
Microsoft’s gaming teams have already had a tough year, as in January there was a separate 1,900 jobs were cut in the Blizzard, Zenimax and Xbox teamsand the Closure of Tango Gameworks and Arcane Austin studios was announced in May. Tango was later revived by KraftonEven though around 50 employees were rehired, it can certainly be described as a turbulent time.
It is worth noting that these quarterly dividends and the share repurchase program all relate to Microsoft in its entirety and not Only However, Bloomberg reports that the company reported an 18% year-over-year increase in its free cash flow in July.
In view of the wave of layoffs in the industry, FromSoftware boss Hidetaka Miyazaki says now is the time to “continue to grow and continue to develop these talents.”
