Microsoft lays off 650 more Xbox employees

Microsoft has announced the layoff of approximately 650 employees within its gaming division, primarily affecting corporate and supporting roles. This decision follows earlier layoffs of 1,900 employees from Activision Blizzard and Xbox, as well as the closure of several game studios, including Arkane Austin, the developer of Redfall. Xbox chief Phil Spencer communicated the layoffs in an internal memo, emphasizing that no games, devices, or experiences are being canceled, nor are any studios closing as a result of these cuts. The layoffs are part of a strategy to align the team structure post-Activision Blizzard acquisition, which was completed in October 2023 for $68.7 billion. Spencer expressed gratitude for the contributions of those affected and outlined support measures, including severance packages and outplacement services. He acknowledged the challenges of such changes but reassured employees that the company is focused on sustainable growth and better support for studio teams.

- Microsoft is laying off 650 employees in its gaming division.

- The layoffs follow previous cuts of 1,900 employees and studio closures.

- No games or studios are being canceled or closed due to these layoffs.

- The layoffs are part of restructuring after the Activision Blizzard acquisition.

- Affected employees will receive support packages, including severance and healthcare.