- “No games, devices, or experiences are being cancelled, and no studios are being closed as part of the adjustments being made today.”
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Microsoft is reducing its workforce by 650 employees from its Xbox games division.
According to an email from Microsoft Gaming CEO Phil Spencer, the layoffs are a result of Microsoft’s initiative to restructure its “post-acquisition team structure” and manage its operations effectively.
“We have made the decision to reduce approximately 650 positions across Microsoft Gaming – mostly in corporate and support functions – to streamline our business for future success,” Spencer stated.
“No games, devices, or experiences are being discontinued, and no studios are being shut down as part of these adjustments today.”
“In the US, we are providing affected employees with exit packages that include severance, extended healthcare, and outplacement services to support their transition; packages outside the US will vary based on location.”
Facing Challenges
The majority of the layoffs at Activision Blizzard will impact corporate and support roles. This follows a previous round of substantial layoffs in January when Microsoft cut 1,900 positions across Xbox, ZeniMax/Bethesda, and Activision Blizzard to align with company objectives.
“Throughout the history of our team, we have experienced both triumphs and difficult moments. Today is one of the challenging days.”
“I understand that undergoing changes like these is tough, but even in the toughest times, this team has shown care and kindness towards each other as we continue to deliver for our players,” he concluded.
These layoffs also come shortly after Microsoft allegedly dissolved its diversity, equity, and inclusion team in July. The company’s major release for the year is Activision’s Call of Duty: Black Ops 6, scheduled to launch this October.
