Microsoft announced on Thursday that it will lay off approximately 650 employees in its gaming division, primarily affecting corporate and support functions. This move comes as part of the company’s efforts to streamline operations following its $68.7 billion acquisition of Activision Blizzard last year.
Xbox chief Phil Spencer revealed the layoffs in an internal memo, stating, “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organise our business for long term success.”
The cuts are primarily focused on integrating teams and resources after the Activision Blizzard merger.Spencer emphasised that “no games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.”
This round of layoffs follows previous cuts in January 2024, when Microsoft eliminated 1,900 positions across Activision Blizzard and Xbox. The gaming industry has faced significant challenges in the past year, with major players like Sony, Take-Two Interactive, and Electronic Arts also implementing job cuts and project cancellations.
For affected employees in the United States, Microsoft will provide exit packages including severance, extended healthcare, and outplacement services. International employees will receive location-specific support.
Spencer acknowledged the difficulty of the situation, stating, “I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted.”
The restructuring aims to align corporate and supporting teams for sustainable future growth, enabling better support for studio teams and business units. Spencer added, “With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs.”
Xbox chief Phil Spencer revealed the layoffs in an internal memo, stating, “As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organise our business for long term success.”
The cuts are primarily focused on integrating teams and resources after the Activision Blizzard merger.Spencer emphasised that “no games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.”
This round of layoffs follows previous cuts in January 2024, when Microsoft eliminated 1,900 positions across Activision Blizzard and Xbox. The gaming industry has faced significant challenges in the past year, with major players like Sony, Take-Two Interactive, and Electronic Arts also implementing job cuts and project cancellations.
For affected employees in the United States, Microsoft will provide exit packages including severance, extended healthcare, and outplacement services. International employees will receive location-specific support.
Spencer acknowledged the difficulty of the situation, stating, “I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted.”
The restructuring aims to align corporate and supporting teams for sustainable future growth, enabling better support for studio teams and business units. Spencer added, “With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs.”
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