Microsoft Lays Off Another 650 Staff From Gaming Teams

Microsoft has laid off another 650 staff members from its gaming teams at Xbox and Microsoft Gaming. This follows mass layoffs at the company earlier this year which terminated over 1,900 roles at Xbox, Activision Blizzard and Bethesda.

Microsoft Gaming boss Phil Spencer sent a company-wide email to employees yesterday confirming the layoffs, impacting 650 roles across Microsoft Gaming and Xbox, mainly corporate and supporting functions. “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,” said Spencer in the email. “Mostly corporate and supporting functions—to organise our business for long term success.”

Spencer continued in the email:

“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,” Spencer added in the email (the full email can be read on IGN).

In total, Microsoft has now laid off nearly 2,500 employees from the company following its nearly $70 billion acquisition of Activision Blizzard, which completed in October 2023.

It’s difficult to figure out what Microsoft’s strategy actually is moving forward. While Sony seems to be doubling down on the lack of competition and ruffling feathers with its expensive PS5 Pro console, Microsoft has been on the back foot this generation. Back in July, a report surfaced that Microsoft might stop marketing Xbox consoles entirely in Africa, Europe and the Middle East, adding to the confusing future of the company.