Microsoft is cutting 650 more jobs across its gaming division, with employees from Xbox and Activision Blizzard set to be most impacted. The news was shared in an internal memo penned by Xbox boss Phil Spencer, as seen by The Verge, with this memo explaining a “post-acquisition” connection.
“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 organise our business for long term success,” Spencer reportedly said.
While the memo made clear that “no games, devices or experiences are being cancelled” as part of these changes, this statement can be fairly dismissed, given the impact these job cuts will have on employees. Those leaving the company will enter an incredibly tough jobs market already populated by thousands of laid-off specialist employees.
This is the second major round of layoffs to hit Microsoft’s gaming division in 2024. The news arrives just months after the company laid off 1,900 employees and shuttered studios including Arkane Austin and Tango Gameworks (which was later resurrected). It speaks to a company still in turmoil, as it deals with the ongoing impact of its acquisition of Activision Blizzard, which cost USD $$68.7 billion.
Read: Krafton acquires Tango Gameworks, two months after studio closure
“For the past year, our goal has been to minimise disruption while welcoming new teams and enabling them to do their best work,” Spencer said of the ongoing changes.
“Throughout our team’s history, we have had great moments, and we have had challenging ones. Today is one of the challenging days.”
Recently, it seems Microsoft is having more challenging days than productive ones. Employees are no doubt feeling the impact of these now-frequent layoffs, as constant adaptation to change and flexibility appears needed in this uncertain period. At this stage, it’s unclear whether Microsoft’s latest round of layoffs will be its last, or whether more change is needed to account for the acquisition cost of Activision Blizzard, and tougher economic times.
Our thoughts are with those impacted by the latest round of layoffs at Microsoft.
