Microsoft is laying off 650 more people from the staff of its Xbox Games division, according to reports. Phil Spencer confirmed the number in a memo to staff, stating that the jobs cut were mostly in corporate and supporting functions to set the business up for long-term success. This marks the second major round of layoffs for Microsoft this year, bringing the total number of cut jobs to about 2,550.
GameFile and Bloomberg reported on the layoffs, while IGN obtained a copy of Spencer’s memo. Spencer mentioned that the changes are to align corporate and supporting teams for sustainable future growth and to better support studio teams and business units.
The Xbox games division has seen multiple rounds of layoffs this year, including cuts in January and the shutdown of four studios in May. Spencer clarified that the recent changes are in alignment with the post-acquisition team structure following Microsoft’s acquisition of Activision Blizzard King.
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These recent layoffs by Microsoft add to the total of around 12,000 layoffs in 2024 as reported by VideoGameLayoffs.com. Other major companies in the gaming industry have also faced layoffs this year.
