Microsoft has recently announced another round of layoffs in its Xbox division, cutting off 650 jobs in a bid to streamline its gaming operations. This latest workforce reduction is followed by the company's earlier decision to lay off 1,900 employees in January 2024, which is a part of a broader restructuring strategy, further following its high-profile acquisition of Activision Blizzard.
650 more employees were laid off in the Xbox division
In an internal memo, Phil Spencer, Microsoft's gaming chief has further confirmed the layoffs, stating that the cuts would primarily affect corporate and support roles within the gaming division.
While these job losses will further impact both U.S. and international employees, Spencer assured staff that no game projects, devices or studios would be cancelled as a result.
Focus on streamlining post-activision Blizzard acquisition
Microsoft has been restructuring its team and comes on the heels of its USD 68.7 billion acquisition of Activision Blizzard, one of the largest deals in gaming history. Since then, Microsoft has been focusing on reducing disruption while integrating new teams.
According to Spencer, the company is committed to long-term success and aligning corporate resources with the needs of the studio teams and business units.
"For the past year, our goal has been to minimise disruption while welcoming new teams and enabling them to do their best work," Spencer said in the memo.
The job cuts, he noted, would help ensure that Microsoft's support teams are better positioned to scale and meet the growing needs of its studios.
Impact on U.S. and international employees
The job cuts will impact workers in both the U.S. and abroad. For affected U.S. employees, Microsoft is offering severance packages, extended healthcare benefits, and outplacement services to ease the transition to new employment. Exit packages for international employees will vary according to local regulations.
2024: A year of major layoffs at Microsoft
The latest layoffs add to the larger workforce reduction from January 2024, when Microsoft cut around 1,900 jobs, including notable employees like Mike Ybarra. As part of the restructuring, the company continues to align its resources to better support studio operations and ensure long-term growth in its gaming business.
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