Microsoft announces another mass layoff at Xbox, affecting 650 employees

It has not been an easy year for the gaming market in general, which has been suffering layoffs of numerous employees in the sector in 2024. However, the industry continues to claim more victims: Microsoft Gaming has announced that it will lay off approximately 650 employees at the company following the completion of its acquisition of Activision Blizzard last year. — that represents about 3% of the company’s global workforce.

As initially reported by Game FileMicrosoft Gaming chief Phil Spencer shared the news with employees in a company-wide email Thursday (12). This means Xbox has cut more than 2,500 jobs since completing its $69 billion acquisition of Activision Blizzard last year.

“As part of aligning our post-acquisition team structure and management of our business, we have made the decision to eliminate approximately 650 roles within Microsoft Gaming — primarily corporate and support roles — to organize our business for long-term success,” Spencer wrote to employees.

“Throughout our team’s history, we have had great moments and also challenging moments. Today is one of those challenging days. I know going through more changes like this is difficult, but even in the most difficult moments, this team has managed to come together and show care and kindness to each other as we work to continue delivering for our players,” the executive explained.

Cuts will not affect “any game, device or experience”, according to Phil Spencer

Even with Microsoft’s recent layoffs of about 3 percent of its global workforce, Phil Spencer seems optimistic about the future. He also explains in the email that the layoffs will not slow down “any games, devices or experiences” from the company.

“As part of the execution of the business, there are some impacts to other teams as they adapt to changing priorities and manage the lifecycle and performance of games. No games, devices or experiences are being canceled and no studios are being closed as part of these adjustments today,” Spencer explained.

In fact, it’s worth remembering that there have already been studios affected recently at Microsoft Gaming. Four of Bethesda’s big studios have had their doors closed, including: Arkane Austin (Redfall), Tango Gameworks (Hi-Fi Rush e The Evil Within), Alpha Dog (Mighty Doom) e a Roundhouse Studios (Prey).

Later, to Tango Gameworks of Hi-Fi Rush was acquired by Krafton, which promised to continue the franchise — as well as other properties from the Japanese studio.