Microsoft lays off another 650 employees from Xbox gaming division

Layoffs continue at Microsoft as the company has cut another 650 jobs today, according to an internal memo from Head of Xbox Phil Spencer that was acquired by The Verge. Not even eight months ago Microsoft laid off 1,900 employees from Activision Blizzard and Xbox, bringing the total number of jobs lost across Microsoft’s Gaming Division to over 2,500 in 2024 alone.

According to Spencer, the cuts are part of “aligning our post-acquisition team structure and managing our business”, with the post-acquisition referring to the $68.7 billion deal to purchase Activision Blizzard that was completed late last year. Spencer also went on to point out that “no games, devices, or experiences are being canceled” as part of today’s round of layoffs, and no studios are being closed.

Here is Phil Spencer’s full internal memo sent to employees today according to The Verge:

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 Spencer, Head of Xbox