Microsoft to Lay off 650 Employees

Business

12 September 2024 16:51

Microsoft is laying off 650 employees from its gaming division, according to a memo from Xbox chief Phil Spencer dated September 12. The layoffs primarily impact corporate and support roles and are intended to position the company for long-term success. Spencer emphasized that no games, devices, experiences, or studios will be affected by these cuts.

This latest round of layoffs brings the total number of staff reductions in Microsoft’s gaming division to 2,550 since the company’s $69 billion acquisition of Activision Blizzard in 2023. Earlier this year, Microsoft reduced its gaming workforce by 1,900, leading to the closure of Hi-Fi Rush developer Tango Gameworks and Redfall developer Arkane Austin.

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The layoffs are part of ongoing adjustments following the Activision Blizzard acquisition and reflect broader challenges within the video game industry.

Phil Spencer stated "For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. 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. 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."

Tags: Microsoft

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