Microsoft Gaming hit with another 650 layoffs

Xbox CEO Phil Spencer announced more layoffs hitting the ‘Microsoft Gaming’ organization.

In an email obtained by Windows Central, Spencer said that another 650 staff would be cut across the organization, which comprises ZeniMax Media, Activision, Blizzard and Xbox Game Studios. However, Spencer also noted that no studios would be closed and the company wasn’t cancelling any devices.

Instead, Spencer wrote that the layoffs are “mostly corporate and supporting functions.” You can read the full email below.

“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 US, we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the US 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.

Throughout our team’s history, we have had great moments, and we have had challenging ones. Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players. We appreciate your support as we navigate these changes and we thank you for your compassion and respect for each other.

Phil”

These layoffs are the latest for Microsoft Gaming this year, bringing the total number to over 2,500. Previously, Microsoft shut down multiple studios, including the ones behind Hi-Fi Rush and Dishonored, as well as laid off 1,900 Xbox and Activision Blizzard employees.

Xbox formed the Microsoft Gaming organization following recent acquisitions like ZeniMax and Activision-Blizzard-King. Notably, Xbox hardware continues to decline but as a whole, Xbox is making more money than ever, thanks in part to massive titles like Call of Duty and World of Warcraft it gained from acquisitions.

Source: Windows Central