Microsoft lays off 650 more employees in Xbox gaming unit
Microsoft has announced the termination of approximately 650 positions within its gaming division, Xbox. This decision was communicated by Xbox head Phil Spencer in an internal memo, as reported by The Verge. The layoffs are primarily affecting corporate and supporting roles, and are part of a restructuring plan following the company's acquisition of Activision Blizzard.
Spencer's memo details restructuring plan
In his memo, Spencer stated, "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 organize our business for long term success." This move comes after Microsoft's $68.7 billion acquisition of Activision Blizzard in October, which was preceded by extensive regulatory scrutiny in both the UK and US.
Microsoft's support for affected employees
Spencer acknowledged the difficulty of the news and expressed gratitude for the contributions made by those affected. He assured that in the US, Microsoft is providing exit packages that include severance pay, extended healthcare benefits, and outplacement services to aid their transition. However, he noted that support packages for employees outside of America may vary based on location.
Spencer assures no impact on games, devices, or experiences
Spencer further clarified that these changes are designed to align corporate and supporting teams for sustainable future growth. He emphasized that no games, devices or experiences are being canceled and no studios are being closed as part of these adjustments. This assurance comes after several game studios were shut down following Microsoft's acquisition of Activision Blizzard. Between January 2023 and June 2024, over 22,250 employees have lost their jobs in the video game industry, as per data from Statista.
