Microsoft is continuing a series of layoffs, with a further 650 people from its gaming division losing their jobs. This follows the previous retrenchment of 1,900 Activision Blizzard and Xbox employees and closure of several game studios, including Arkane Austin and Tango Gameworks. The company’s gaming head, Phil Spencer, maintains that no games have been canceled and no further studio closures are expected as a result of these layoffs.
The cuts mainly target corporate and support roles within the Xbox division. The company is realigning following Microsoft’s massive $68.7 billion acquisition of Activision Blizzard. Spencer announced this internally, reassuring the remaining employees that the company was reorganizing for future growth and sustainability.
In the memo sent out by Spencer, he expressed gratitude for the contributions made by the departing staff. He explained that in the US, the affected employees would be provided with severance packages, extended healthcare, and outplacement services to smoothen their transition. Spencer indicated there might be impacts on other teams and that they would have to adjust to new priorities and manage the lifecycle of games, but reaffirmed that no games or studios were being closed as part of these adjustments.
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