Microsoft has announced another wave of retrenchments, with 650 positions being cut from its gaming division, according to an internal memo from Xbox head Phil Spencer, obtained by IGN.
The retrenchments primarily impact corporate and support roles within the division, with Spencer emphasizing that the decision was made to position the company for “long-term success.”
In the memo, Spencer reassured staff that no games, devices, or experiences are being scrapped, and no studios are slated for closure as a result of these retrenchments. This latest round of cuts brings the total number of job losses in Microsoft’s gaming sector to 2,550 since the company’s acquisition of Activision Blizzard for $69 billion in 2023.
Spencer acknowledged that the layoffs are linked to the company’s efforts to streamline operations following the acquisition.
Parts of the memo reads:
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. In the U.S., we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the U.S. packages will differ according to location.
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. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.
