Another round of mass layoffs is hitting Microsoft’s gaming division, with 650 employees being laid off across Xbox, Bethesda, and Activision Blizzard. The news comes in an internal memo from Xbox boss Phil Spencer to employees.
Published by IGNSpencer explained that the impact will be felt primarily in corporate and support roles “to position our business for long-term success.” He also stated that “no games, devices, or experiences will be canceled and no studios will close as part of today’s changes.”
All those laid off in the U.S. will receive severance pay, extended health care, and outplacement services. The package will vary in other countries.
Following the layoffs in early 2024, Microsoft has laid off 2,550 employees since acquiring Activision Blizzard in overdue 2023. That acquisition led to a sudden enhance in the company’s gaming workforce to around 22,000 by the end of last year, and after years of acquisitions that combined multiple separate publishing divisions and brands, some sort of layoffs and restructuring was inevitable. But earlier layoffs came with the announced closures of Tango Gameworks — since saved — and Arkane Austin, and the spin-off of Toys For Bob.
The gaming industry workforce has suffered tremendous losses over the past few years as the economic tides have shifted and company management has decided to reduce its workforce. We wish everyone affected by this latest round of layoffs the best of luck in finding recent employment.
Here is the full text of Spencer’s email to staff:
Over the past year, our goal has been to minimize disruption while welcoming recent teams and enabling them to do their best work. As part of realigning our team structure following the acquisition and managing our business, we have made the decision to eliminate approximately 650 roles within Microsoft Gaming—primarily corporate and support roles—to position our business for long-term success.
I know this is arduous news. We are deeply grateful for the input of our colleagues who are learning they have been impacted. In the U.S., we are supporting them with exit packages that include severance, extended health care, and outplacement services to support them transition; outside the U.S., packages will vary by location.
These changes position our corporate and support teams and resources for sustainable growth into the future 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 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 today’s changes.
Throughout our team’s history, we have had great moments and arduous moments. Today is one of those arduous days. I know it is arduous to go through changes like this, but even in the most arduous times, this team has been able to come together and show each other care and kindness as we work to continue to deliver for our players. We appreciate your support as we navigate these changes and thank you for your compassion and respect for each other.
Phil
Source: IGN
